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

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

It will cost you less money overall.
It will cost you less money overall.

It will probably have a higher interest rate.

Answer 1

The correct response is:

It will cost you less money overall.

A loan with a lower APR (Annual Percentage Rate) generally means that the cost of borrowing is lower, so you would pay less in total interest over the life of the loan.