Question: Why does the effective annual rate often differ from that which the company advertises?Because the actual interest rate doesn't take into account the cost of
Why does the effective annual rate often differ from that which the company advertises?Because the actual interest rate doesn't take into account the cost of state taxes; it only incorporates the minimum federal tax.Because the effective interest rate takes into account that the calculations are done more than once per year.Because of depreciation of the rate over time.Because the actual interest rate doesn't take into account the cost of administrative services.
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