Cryptocurrency Q&A
Which is better, APR or APY?
Which is better, APR or APY?
Alessandra
Mon Nov 18 2024
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5 answers
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I'm trying to understand the difference between APR and APY. I want to know which one is better when considering investment or loan options. Can someone explain which metric I should prioritize?
5 answers
SamuraiHonor
Tue Nov 19 2024
It takes into account the effect of compounding interest, which means that the interest earned on an investment will itself generate additional interest over time.
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Chiara
Tue Nov 19 2024
Borrowing money always involves certain costs, and one of the key factors influencing these costs is the Annual Percentage Rate (APR).
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Lorenzo
Tue Nov 19 2024
A lower APR is generally considered more favorable when borrowing, as it indicates that the borrower will pay less in interest and other fees over the life of the loan.
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InfinityVoyager
Tue Nov 19 2024
This can make a significant difference, especially when dealing with larger loan amounts or longer repayment terms.
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Lorenzo
Tue Nov 19 2024
On the other hand, Annual Percentage Yield (APY) is a metric used to measure the potential return on an investment.
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