top of page
Write.png

Test Your Knowledge

Earn 100 Diamonds for every perfect score!

APR versus APY: what is the difference?

Question 1:


What does APR (Annual Percentage Rate) represent?

A. The compound interest rate applied to both principal and accumulated interest


B. The simple interest rate applied to the principal over a year


C. The interest rate applied only to the accumulated interest

Question 2:


In the example given, how much interest would you earn from a 25% APR on an investment of 2.0 Ether after one year?

A. 0.25 Ether


B. 0.5 Ether


C. 0.2544 Ether

Question 3:


What is the key difference between APR and APY?

A. APR is based on compound interest, while APY is based on simple interest


B. APR accounts for the number of compounding periods, while APY does not


C. APR does not account for compounding, while APY does

-

bottom of page