Solved: Explain the difference between the apr and ear, Financial Management

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Explain the difference between the apr and ear

Discussion Post Effective Annual Rate

What effect does compounding interest more frequently than annually have on its future value and the effective annual rate (EAR)? Explain. How would you explain the difference between the annual percentage rate (APR) and effective annual rate (EAR) to a friend with no background in finance?

The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.

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Financial Management: Explain the difference between the apr and ear

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