Asked by w
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 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 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.
Responses
It is equal to the interest rate times the principal.
It is equal to the interest rate times the principal.
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 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.
Answers
Answered by
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 represents the total cost of borrowing on a loan, including the interest rate and any additional fees, allowing borrowers to better compare loan options.
**It is a simple way to compare all the various elements of different loans.**
APR represents the total cost of borrowing on a loan, including the interest rate and any additional fees, allowing borrowers to better compare loan options.