Question: Identify a true statement about the effective annual rate.Multiple choice question.An effective annual rate is higher than annual percentage rate if compounding of interest happens

Identify a true statement about the effective annual rate.Multiple choice question.An effective annual rate is higher than annual percentage rate if compounding of interest happens more than once in a year.An effective annual rate is always the stated rate on a loan.An effective annual rate is the rate which excludes any interest rate compounding.An effective annual rate is the rate per period times the number of periods per year.

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