How can I explain...?

How can I explain to someone who does not read bank argot...What is the difference between the Annual Percentage Rate and the Annual Percentage Yield?

Answers:
annual percentage rate: the annual rate of interest; the total interest to be compensated surrounded by a year divided by the stability due.

annual percentage concede: The potent annual rate of return taking into explanation the effect of compounding interest.
show him or her the math; step by step


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