Asked by Kerri Wilson on Jun 09, 2024
Verified
Annual percent yield is higher than the annual percentage rate because APY takes into account the additional interest earned by compounding.
Annual Percentage Rate
A measure that represents the actual yearly cost of funds over the term of a loan, including any fees or additional costs associated with the transaction.
- Scrutinize the influence of variable compounding rates on the progression of investments.
Verified Answer
DG
David GreenfieldJun 09, 2024
Final Answer :
True
Explanation :
APY factors in the effect of compounding on the interest earned, which can lead to a higher yield compared to the stated APR.
Learning Objectives
- Scrutinize the influence of variable compounding rates on the progression of investments.
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