The EAR is the true cost of borrowing and lending.

Name: The EAR is the true cost of borrowing and lending.
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Question

Quizplus · Accepted Answer

The EAR (Effective Annual Rate) is the true cost of borrowing and lending, taking into consideration the compounding of interest over the life of a loan or investment. It represents the interest rate that would be earned or paid if the interest was compounded annually.

The EAR Is the True Cost of Borrowing and Lending