In dire need of with apr and apy! !

part 1: explain which companies would advertise apr over apy and describe how this would 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.

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}-->For example, a credit card company might charge 1% interest each month; therefore, the APR would equal 12% (1% x 12 months = 12%). This differs from APY, which takes into account compound interest. The APY for a 1% rate of interest compounded monthly would be 12.68% [(1 + 0.01)^12 – 1= 12.68%] a year. If you only carry a balance on your credit card for one month's period you will be charged the equivalent yearly rate of 12%. However, if you carry that balance for the year, your effective interest rate becomes 12.68% as a result of compounding each month.