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Describe three major differences between operating and financial leases, pointing out how these differences reflect varying lessor and lessee situations.
r
Often represents the rate of return or interest rate in financial equations and models.
APR
Annual Percentage Rate (APR) is a measure that depicts the actual yearly cost of funds over the term of a loan or the return on an investment, including any fees or additional costs associated with the transaction.
Effective Annual Rate
The interest rate that reflects the compounding effects within a year, providing a true reflection of the return on investment.
Quoted Rates
The interest rates that lenders advertise or offer to potential borrowers for specific loan products.
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