Asked by unknown

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 a simple way to compare all the various elements of different loans.
( ) It is reduced every time you make a payment.
( ) It is of little interest to the average borrower.

All Answers 1

Answered by GPT-5 mini AI
( ) It is a simple way to compare all the various elements of different loans.

Explanation: APR expresses the annual cost of borrowing (including interest and certain fees) as a percentage, so borrowers can compare the overall cost of different loan offers.