answersLogoWhite

0

APR (Annual Percentage Rate) is the annual rate charged for borrowing or earned through an investment, while APY (Annual Percentage Yield) takes compounding into account. APR does not consider compounding, while APY reflects the effect of compounding on the interest rate.

User Avatar

AnswerBot

4mo ago

What else can I help you with?

Continue Learning about Finance

Can you explain how T-bill interest works?

Treasury bills, or T-bills, are short-term government securities that are sold at a discount to their face value. The difference between the purchase price and the face value is the interest earned by the investor. When the T-bill matures, the investor receives the full face value. The interest rate is determined by the difference between the purchase price and the face value, and is expressed as an annual percentage rate.


Can you explain how an offset account works?

An offset account is a type of savings or checking account linked to a mortgage. The balance in the offset account is subtracted from the outstanding balance of the mortgage when calculating interest, reducing the amount of interest paid and helping to pay off the mortgage faster.


Could you explain to you what it amortization of a loan is?

Amortization of a loan is the process of dividing a lump sum of money owed into regular payments, such as with a home mortgage. You take a loan to purchase a house; you pay back a little bit every month, plus interest. Calculating the exact amortization is somewhat complicated and can vary between lenders. Ask your lender for the details on exactly how your loan amortization is calculated.


Can you explain the difference between a bond and a stock?

A bond is a type of investment where you lend money to a company or government in exchange for regular interest payments and the return of the initial investment at a specified future date. On the other hand, a stock represents ownership in a company, giving you a share of its profits and losses, but without a guaranteed return.


Can you provide examples of bond questions that are commonly asked during job interviews?

Common bond-related questions asked during job interviews include: Can you explain the difference between a corporate bond and a government bond? How do interest rates affect bond prices? What factors do you consider when evaluating the credit risk of a bond? Can you discuss the concept of yield to maturity and how it is calculated? How would you explain the concept of duration in relation to bond investments?

Related Questions

How do you explain the difference between the vassals and serfs?

Explain the difference between the vassals and the serfs


Explain the difference between young and mature mountains?

Explain the difference between young and mature mountains?


What is the difference between describe and explain?

Describe is what it is and explain is why it is as it is


What is difference between explain and describe?

Describe is what it is and explain is why it is as it is


Explain the difference between a cash and credit transaction for purchass and sales?

explain the difference between cash and credit transaction


Explain the difference between share of customer and customer equity.?

Explain the difference between share of customer and customer equity


What is the difference between a system and a subsystem?

explain the difference between systems and sub systems


Explain the difference betwwen the two types of feeding?

explain the difference between the two types of feeding?


Explain the difference between batch processing and real-time processing?

explain the difference between batch processing and real-time processing


Explain the differences between binocular and panoramic vision?

explain the difference between binocular and panoramic vision


Explain difference between total and marginal utility. Define UTILITY. How do consumers maximize UTILITY?

explain the difference between total utility and marginal utility


Explain the difference between doctor of dental surgery?

The difference between a DDS and...what? A fugging cheese sandwich?