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What is the interest rate charged per period multiplied by the number of periods per year called? effective annual annual percentage periodic interest compound interest daily interest?

User Tadpole
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The annual percentage rate is the interest rate charged per period multiplied by the number of periods. The annual percentage rate is also known as the APR and is what credit cards promote their interest rates by. For example, if a credit card states their APR is 20%, that is the percentage over the year to find the actual monthly interest rate you would need to divide that by 12 periods/months.

User Rachel Sanders
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