Question
Which statement is true about an annual percentage rate (APR)?(1 point)
Responses
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.
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.
Responses
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.
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.
Answers
GPT-4o mini
The true statement about an annual percentage rate (APR) is:
**It is a simple way to compare all the various elements of different loans.**
APR provides a standardized measure of the cost of borrowing, which includes the interest rate as well as any associated fees or costs over the life of the loan, making it easier for borrowers to compare different loan offers.
**It is a simple way to compare all the various elements of different loans.**
APR provides a standardized measure of the cost of borrowing, which includes the interest rate as well as any associated fees or costs over the life of the loan, making it easier for borrowers to compare different loan offers.