Would you please share with me the interest rate calculations for the apr and the ear. Why do they differ? Aren't interest rates just interest rates?
![]() |
Would you please share with me the interest rate calculations for the apr and the ear. Why do they differ? Aren't interest rates just interest rates?
Effective interest rate - Wikipedia, the free encyclopedia
Annual percentage rate - Wikipedia, the free encyclopedia
They are quite different but simply put I think the EAR factors in the number of compunding periods where APR does not. There are more differences then this but that is a start.
All times are GMT -7. The time now is 03:02 PM. |