Which statement below is false about the difference between the effective annual rate (EAR) and the...

 

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Which statement below is false about the difference between the effective annual rate (EAR) and the annual percentage rate (APR)? EAR would be equal to APR when the compounding frequency is annual. The APR is a stated rate and is computed as (r* n), where r is the rate per period and n is the number of periods per year. The effective annual rate will not always be higher than the annual percentage rate as long as the account is compounded more than once a year and the interest rate is greater than zero. The EAR considers compounding and is computed as (1 + r/n)^n - 1, where r is the rate per period and n is the number of periods per year. Which statement below is false about the difference between the effective annual rate (EAR) and the annual percentage rate (APR)? EAR would be equal to APR when the compounding frequency is annual. The APR is a stated rate and is computed as (r* n), where r is the rate per period and n is the number of periods per year. The effective annual rate will not always be higher than the annual percentage rate as long as the account is compounded more than once a year and the interest rate is greater than zero. The EAR considers compounding and is computed as (1 + r/n)^n - 1, where r is the rate per period and n is the number of periods per year.

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