May 1, 2023
Question: I feel like I should know this, but I don’t - what’s the difference between APR and APY?
Answer: Never “should” on yourself. We weren’t born to know this stuff!
APR = Annual Percentage Rate - this is the interest rate plus any other borrowing costs, meaning this is what you pay.
APY = Annual Percentage Yield - this is an earnings term, meaning the interest you earn on your investment.
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