Understanding APR, APY, and EAR
Posted on 10/06/2015 11:09:29 AM
When you are shopping for CD’s, banks will always quote the Annual Percentage Yield (APY). When you are applying for a loan, banks will quote you the Annual Percentage Rate (APR). When you borrow money, you need to understand what the Effective Annual Rate (EAR) is. I use the example..