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.

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.

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