Question

Part 1: explain why companies would advertise APR over APY and describe how this would help them attract customers

Part 2: create a unique APR(state how often the rate is compounded) and calculate the corresponding APY. Use a comparison of the two rates to verify your answer to part 1.
IN DESPERATE NEED OF HELP PLEASE

Answer 1

APY is larger than APR
that is why

Answer 2

how would it help attract customers? ive been stuck on the question for a few days

Answer 3

because it is larger
looks like you make more money

Answer 4

what would you rather earn? 6% interest or 6.167%?

Answer 5

6.167 because over time even thought its not a big difference youll earn a little more

Answer 6

though*

Answer 7

so if im not mistaken they advise apr over apy because apy is larger and it makes it look like youre earning more?

Answer 8

you have it backwards
advertise APY over apr

Answer 9

oooh i see,
the problem says APR over apy
hmmm that i don't get

Answer 10

oh lol the question i got asked why they would advertise apr over apy thats why i was lost

Answer 11

yes, i can see why you would be
maybe it is a typo
if you look at the front of a bank, apy is what you see

Answer 12

Yeah that's why I've been stuck if it was the other way around I would've gotten it ughh lol thank you for your help though

Answer 13

sorry
i would say "no, they advertise apy, you are wrong"

Answer 14

lmao i might just try that