Question 290 APR, effective rate, debt terminology
Which of the below statements about effective rates and annualised percentage rates (APR's) is NOT correct?
(a) An effective annual rate could be called: "a yearly rate compounding per year".
(b) An APR compounding monthly could be called: "a yearly rate compounding per month".
(c) An effective monthly rate could be called: "a yearly rate compounding per month".
(d) An APR compounding daily could be called: "a yearly rate compounding per day".
(e) An effective 2-year rate could be called: "a 2-year rate compounding every 2 years".