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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}

Payment history and credit utilization are the largest factors in most credit-score models, so pay on time and keep balances low.

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.