Canadian mortgages are quoted with APRs using ________ compounding even though payments are usually monthly.
A) semiannual
B) monthly
C) quarterly
D) semiannual.

Question

Quizplus · Accepted Answer

Canadian mortgages are compounded semiannually, even though payments are usually made monthly. This means that interest is calculated based on the semiannual compounding rate, but payments are still made on a monthly basis. This can lead to differences between the quoted APR and the actual effective rate that the borrower pays.

Canadian Mortgages Are Quoted with APRs Using ________ Compounding Even