Comparison between APR and APY

Annual Percentage Rate Annual Percentage Yield
Definition:Annual Percentage Rate (APR) is an expression of the effective interest rate that the borrower will pay on a loan, taking into account one-time fees and standardizing the way the rate is expressed.Annual Percentage Yield (APY) expresses an annual rate of interest taking into account the effect of compounding, usually for deposit or investment products.
Transaction costs:Transaction costs and fees are taken into account when calculating APR.APY does not take transaction costs into account.

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