Question: In which scenario would the difference between APR and EAR be most significant? A loan with daily compounding and a high interest rate. The difference
In which scenario would the difference between APR and EAR
be most significant?
A loan with daily compounding and a high interest rate.
The difference between APR and EAR is always insignificant.
A loan with annual compounding and a low interest rate.
A shortterm loan with no compounding.
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