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

Question

Quizplus · Accepted Answer

In Canada, the convention for quoting APRs (Annual Percentage Rates) on mortgages is to use semiannual compounding, even though the actual mortgage payments are typically made on a monthly basis. This means that the interest rate is effectively compounded twice a year.

Canadian Mortgages Are Quoted with APRs Using ________ Compounding Even