Which one of the following statements is correct?
A) The APR is equal to the EAR for a loan that charges interest monthly.
B) The EAR is always greater than the APR.
C) The APR on a monthly loan is equal to (1 + monthly interest rate) 12- 1.
D) The APR is the best measure of the actual rate you are paying on a loan.
E) The EAR, rather than the APR, should be used to compare both investment and loan options.
Correct Answer:
Verified
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