# APR vs. APY

# APR is the annual rate of interest without taking into account the compounding of interest within that year.

# APR = Periodic Rate * Number of Periods in a Year

# APY does date into account the effects of intra-year compounding.

# APY = ( (1 + Periodic Rate) ^ Periods ) - 1

# Part 1. Complete the following function that calculates the APR for a given periodic rate and number of periods APR_calculator <- function(periodic_rate, n_of_periods){ APR <-

# fill in your answer here return(APR) }

# Part 2. Complete the following function that calculates the APY for a given periodic rate and number of periods APY_calculator <- function(periodic_rate, n_of_periods){ APY <-

# fill in your answer here return(APY) }

# Part 3. Suppose your credit card company charges 1% interest each month. If you carry a balance for 1 year # what is the difference between your APR and APY? difference <-

# fill in your answer here print(difference)