What is relationship between a stated interest rate and APR

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1) What is APR? what is the relationship between a stated interest rate and an APR? 2) If stated rate is 4% per year , calculate the APR when interest rate is compounded (a) annually and (b) monthly ? 3) While depositing money in the bank , the investor would prefer the interset to be compounded annually or monthly ? why ? 4) while negotiating a loan from the bank , the borrower would prefer the interest to be compounded annually or monthly ? why ?

Reference no: EM131185050

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