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A consumer is being charged two different rates

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1. Referring to the EAR, a key component to take into consideration is "compound interest" and this creates a major distinction between the APR and EAR. When it comes to the APR vs. EAR, does this mean that a consumer is being charged two different rates?
2. What is an annuity and how would this differ from a "standard" (so to speak) time value of money scenario? Please provide examples of annuity situations?

Reference no: EM13295757

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