Business & Finance

Effective annual rate

What effect does compounding interest more frequently than annually have on its future value and the effective annual rate (EAR)? Explain. How would you explain

Aug 27, 2025 2 views

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What effect does compounding interest more frequently than annually have on its future value and the effective annual rate (EAR)? Explain. How would you explain the difference between the annual percentage rate (APR) and effective annual rate (EAR) to a friend with no background in finance?

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