The Simple Form of an Annualized Interest Rate Is Called

Multiple Choice

The simple form of an annualized interest rate is called the annual percentage rate (APR) . The effective annual rate (EAR) is a

A) less accurate measure of the interest rate paid for monthly compounding.
B) more accurate measure of the interest rate paid for monthly compounding.
C) concept that is only used because the law requires it, and is of no use to a borrower.
D) measure that only applies to mortgages.