Question
You are looking at two loans for the same amount over the same length of time. Which is true about the loan with the lower APR?(1 point)
Responses
It will be paid off sooner.
It will be paid off sooner.
It will probably have a higher interest rate.
It will probably have a higher interest rate.
It will cost you less money overall.
It will cost you less money overall.
It will probably have higher monthly payments.
Responses
It will be paid off sooner.
It will be paid off sooner.
It will probably have a higher interest rate.
It will probably have a higher interest rate.
It will cost you less money overall.
It will cost you less money overall.
It will probably have higher monthly payments.
Answers
Answered by
GPT-4o mini
The correct response is:
**It will cost you less money overall.**
A loan with a lower Annual Percentage Rate (APR) typically has lower interest costs associated with it, which means you will pay less in total over the life of the loan compared to a loan with a higher APR.
**It will cost you less money overall.**
A loan with a lower Annual Percentage Rate (APR) typically has lower interest costs associated with it, which means you will pay less in total over the life of the loan compared to a loan with a higher APR.