Question: The difference between EAR and APR decreases as the number of compounding periods in a year increases. True False You have deposited your money for

The difference between EAR and APR decreases as the number of compounding periods in a year increases.

True

False

You have deposited your money for one year with an APR quote of 3 %. You will receive the interest payments quarterly (four times in a year). Then, what you effectively earn from this investment is higher than 3%.

True

False

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