Asked by <3

Which statement is true about an annual percentage rate (APR)?(1 point)
Responses

It is reduced every time you make a payment.
It is reduced every time you make a payment.

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 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, so it lets borrowers compare the overall cost of different loan offers (though it may not capture every fee or differences in compounding).