Questions tagged [apr]
Annual Percentage Rate
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questions with no upvoted or accepted answers
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Understanding/Calculate effective annual rate and savings
I came across the following exercise:
You put $1000 into a savings account today that offers a 5% APR with semi-annual compounding.
What is the effective annual rate of the saving account?
How much ...
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Why does APR not include compounding?
As I understand it the Annual Percentage Rate (APR) formula does not take compounding into account. It is, in effect, a nominal rate.
Why is this? I thought that APR was designed to allow consumers to ...
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