Effective rate and apr

Effective rate> annual rate
Effective rate is always greater than annual rate.
Effective rate=(1+daily rate) raise to 365 -1

Apr= 22.9%

Daily rate= 0.06274%= 0.0006274

Effective rate=  ( 1+0.0006274) raise 365 -1    =   25.9%

Hence effective rate > than annual rate coz it is compounded on a daily basis

Which means
think twice

Buying
Car
House
Anything else on loan