As the number of compounding periods increases, the APR increases, and the EAR decreases?
Question
Solution 1
No, that's not correct. As the number of compounding periods increases, the Annual Percentage Rate (APR) remains the same because it's the nominal rate of interest. However, the Effective Annual Rate (EAR) increases. This is because the EAR takes into account the effects of compounding, and more com Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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