Wise-Wallet

Description of image

Question 9

APR and APY are easy to mix up; APY includes compounding while APR often does not, so comparisons need care.

Which statement is correct about APR vs APY?

Did You Also Know...

^{By Wise Wallet}

Starting to save even modest amounts early takes advantage of compounded growth and can dramatically increase long-term wealth.

APR and APY always equal the same number.APR always includes compounding while APY does not.APY accounts for compounding and can be higher than APR.They are interchangeable on loan offers.