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Explain the Difference Between the Effective Annual Rate (EAR)and the Annual

question 105

Essay

Explain the difference between the effective annual rate (EAR)and the annual percentage rate (APR).Of the two,which one has the greater importance and why?

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Definitions:

Consumptions

The process of using up goods and services to satisfy individual or collective needs or desires, often analyzed in economic contexts.

Apples

A fruit from the Malus domestica tree, known for its sweet taste and variety, commonly consumed worldwide and used in numerous culinary dishes.

Oranges

Citrus fruits known for their juicy segments and sweet to tart flavor, rich in Vitamin C and used in both culinary and non-culinary contexts.

Spaghetti Consumption

The amount of spaghetti consumed over a certain period, often used to measure food consumption patterns or preferences.

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