If you hold the annual percentage rate constant while increasing the number of compounding periods per year,then

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The effective interest rate takes into account the effect of compounding on the interest rate. If the number of compounding periods per year increases, the interest will be compounded more frequently, and this will lead to an increase in the effective interest rate. However, since we are assuming that the annual percentage rate remains constant, the nominal or stated interest rate will not change.

If You Hold the Annual Percentage Rate Constant While Increasing