When a bank customer borrows, the bank gives her the APR. When she deposits funds, she is given the APY.

Name: When a bank customer borrows, the bank gives her the APR. When she deposits funds, she is given the APY.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

APR (Annual Percentage Rate) is typically used to describe the interest rate for borrowers, while APY (Annual Percentage Yield) reflects the amount of interest a depositor will earn on their savings, taking into account the effect of compounding.

When a Bank Customer Borrows, the Bank Gives Her the APR