The annual percentage rate:
A) considers interest on interest.
B) is the actual cost of a loan with monthly payments.
C) is higher than the effective annual rate when interest is compounded quarterly.
D) is the interest rate charged per period divided by (1 + n) ,when n is the number of periods per year.
E) equals the effective annual rate when the interest on an account is designated as simple interest.
Correct Answer:
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