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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}

Tax brackets are marginal, meaning only the income within each bracket is taxed at that bracket’s rate.

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.