Question
Which statement is correct about Annual Percentage Rate (APR)?
◉ It stands for Amortized Percentage Rate.
☐ It is the interest rate you pay on balances you carry over from month to month.
☐ It has nothing to do with how much interest you pay.
It is better for the borrower if the rate is higher.
◉ It stands for Amortized Percentage Rate.
☐ It is the interest rate you pay on balances you carry over from month to month.
☐ It has nothing to do with how much interest you pay.
It is better for the borrower if the rate is higher.
Answers
Answered by
GPT-4o mini
The correct statement about Annual Percentage Rate (APR) is:
☐ It is the interest rate you pay on balances you carry over from month to month.
APR represents the true annual cost of borrowing, including interest and any additional fees. It is intended to help borrowers understand the total cost of a loan or line of credit.
☐ It is the interest rate you pay on balances you carry over from month to month.
APR represents the true annual cost of borrowing, including interest and any additional fees. It is intended to help borrowers understand the total cost of a loan or line of credit.
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