Other things being equal,the more frequent the compounding period,the:
A) higher the APR.
B) lower the APR.
C) higher the effective annual interest rate.
D) lower the effective annual interest rate.

Question

Quizplus · Accepted Answer

The more frequent the compounding period, the higher the effective annual interest rate because interest is being earned and reinvested more frequently within the year. However, this does not necessarily mean that the APR will be higher.

Other Things Being Equal,the More Frequent the Compounding Period,the