Which rate would be most informative

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Reference no: EM132653527

Problem 1: To someone who is not aware of fundamental TVM principles, which rate, the APR or the EAR, i.e. APY, would be most informative to them regarding the actual annual interest rate they are being charged on a consumer loan? (FYI, historically under "truth-in-lending" requirements, consumer loan laws have required lenders report the APR to the general public. Based on your answer, do you agree with this?)

Reference no: EM132653527

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