The First Bank of Lending lists the following APR for loans. Determine the APY, or effective interest rate, for a loan amount that is between $20,000$⁢20,000 and $99,999$⁢99,999. Express your answer as a percentage rounded to the nearest hundredth of a percent, if necessary.
 

To calculate the **APY** (Annual Percentage Yield) or effective interest rate based on the **APR** (Annual Percentage Rate) for the loan, you can use the following formula:

\[
APY = \left( 1 + \frac{APR}{n} \right)^n - 1
\]

Where:
- $ APR $ is the annual percentage rate (in decimal form).
- $ n $ is the number of compounding periods per year.

However, you haven't provided the specific APR or the number of compounding periods. Could you please provide that information? 

Once I have that, I can help you calculate the APY effectively.

Let me know if you need details on compounding periods or have any questions. 

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**Follow-up questions:**
1. What is the APR for this loan amount range?
2. Is the compounding frequency for the APR monthly, daily, or quarterly?
3. Would you like a breakdown of how compounding affects interest rates?
4. Should I also explain the difference between APR and APY?
5. Do you need to calculate the APY for multiple loan amounts or just one?

**Tip:** APY is always greater than APR unless there is no compounding.

The First Bank of Lending lists the following APR for loans. Determine the APY, or effective interest rate, for a loan amount that is between $20,000 and $99,999. Express your answer as a percentage rounded to the nearest hundredth of a percent, if necessary.

Learn how to calculate the APY (Annual Percentage Yield) for loans with APR (Annual Percentage Rate) compounding. This guide covers the formula for APY based on different compounding periods and walks you through determining the effective interest rate for loan amounts between $20,000 and $99,999.

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