Wise-Wallet

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}

Buying mortgage points lowers your rate in exchange for an upfront cost, so you should only buy points if you’ll keep the loan long enough to break even.

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.