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In the US, this is basically why APR =/= APY. Where APR is the effective rate including fees.
by beerandt 6y ago
In the US, this is basically why APR =/= APY.
Where APR is the effective rate including fees.
- pkaye 6y agoI though APY is just APR with interest compounding.
- foobarian 6y agoThere is definitely a difference between APR and the nominal interest rate of a loan. APY is the same as APR if the compounding happens once a year.
- beerandt 6y agoNot if there are fees or points charged by the bank for the loan. They must be included in calculating apr.