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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}

The word “mortgage” comes from Old French meaning “dead pledge,” because the pledge ends when the debt is repaid.

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.