MAT205

Homework: Chapter 4 Homework O Question 2 > Score: 0 of 1 point Save Explain why the term APR appears in the compound interest formula for interest paid n times a year. Choose the correct answer below A. APR represents the annual principle rate. The APR represents the original investment and must be divided by the number of compounding periods per year, n, in order to determine the yearly compounded interest rate. OB. APR represents the annual percentage rate (as a decimal). Since the APR represents a yearlong rate, to account for fluctuation, the rate needs to be divided by the number of compounding periods per year, n. O C. APR represents the annual principle rate. Since the APR is the total amount of interest earned in a year, it needs to be divided by the number of compounding periods per year, n. O D. APR represents the annual percentage rate (as a decimal). To account for the interest paid n times a year, this annual (yearly) rate needs to be divided by the number of compounding periods per year, n