Question: What's the difference between APR and EAR? Question 1 1 options: 1 ) EAR computes interest on a loan from the first day of the
What's the difference between APR and EAR?
Question options:
EAR computes interest on a loan from the first day of the loan, while APR computes interest from the end of the first month of the loan.
EAR loans use compounding interest, and APR loans don't.
Lenders are legally required to show borrowers the EAR on any loan offered.
EAR is a more accurate representation of what you'll actually pay in interest on a loan than APR.
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