Which statement is true about an annual percentage rate (APR)?(1 point) Responses It is of little interest to the average borrower. It is of little interest to the average borrower. It is a simple way to compare all the various elements of different loans. It is a simple way to compare all the various elements of different loans. It is equal to the interest rate times the principal. It is equal to the interest rate times the principal. It is reduced every time you make a payment. It is reduced every time you make a payment.
1 answer
The statement that is true about an annual percentage rate (APR) is: "It is a simple way to compare all the various elements of different loans."
APR represents the total cost of borrowing on a yearly basis, including not just the interest rate but also any fees or additional costs related to the loan, making it a useful tool for comparing loan offers.
