You are looking at two loans for the same amount over the same length of time. Which is true about the loan with the lower APR?(1 point)

Question

Responses

It will probably have a higher interest rate.
It will probably have a higher interest rate.

It will be paid off sooner.
It will be paid off sooner.

It will probably have higher monthly payments.
It will probably have higher monthly payments.

It will cost you less money overall.

Answer 1

The correct response is:

It will cost you less money overall.

A loan with a lower APR (Annual Percentage Rate) typically indicates that you will pay less interest over the life of the loan compared to a loan with a higher APR, assuming all other factors such as loan amount and term length are the same.