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APR vs APY: The Difference That Costs You

YouTubeNet Worth It Daily

APR vs APY: The Difference That Costs You

APR and APY look alike but aren't. APR is the simple yearly rate before compounding; APY includes compounding. On debt (like a credit card) your real cost trends toward the higher APY; on savings, chase the highest APY because that's your money compounding for you. Same letters, opposite impact. This video is for educational and entertainment ...

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