APR vs. APY (In 30 Seconds)
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APR vs. APY (In 30 Seconds)
APR is the interest rate without compounding. APY includes compounding—so it’s the real cost or return. APR tells you the base number. APY shows the full picture. If you’re borrowing, APY shows what you really pay. If you’re saving, APY shows what you really earn. Same number, different truth—always look for APY.
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