Annual percentage rate (APR) is:A.a yearly fee charged on a credit card.B.an interest rate that compounds yearly.C.the interest rate on a loan expressed as a percentage.D.the total cost of a loan per year, expressed as a percentage.SUBMITarrow_backPREVIOUS

he annual percentage rate (APR) of a loan is different from the interest rate because it:A.is calculated from the remaining interest owed.B.includes charges and fees.C.includes the rate but not the fees and charges.D.only covers the interest for a year.

Which of the following statement is False?Group of answer choicesAn annual percentage rate (APR) is the rate that interest earns in one year before the effect of compounding.An APR can’t be used as a discount rate because the APR does not reflect the true amount you will earn in one year.The principal is repaid over the life of an amortising loan.Because the APR does not include the effect of compounding, it is always less than the EAR.

In compound interest, what does 'rate' refer to?*The percentage of the principal amount charged as interestThe duration for which interest is calculatedThe principal amount itselfThe total amount after interest

The effective annual rate (EAR) for a loan with a stated APR of 10% compounded quarterly is closest to:a.9.65%.b.12.50%.c.15.00%d.10.00%.e.10.38%

Which of the following statements is FALSE?a.The annual percentage rate indicates the amount of simple interest earned in one year.b.Because interest rates may be quoted for different time intervals, it is often necessary to adjust the interest rate to a time period that matches that of our cash flows.c.The effective annual rate indicates the amount of interest that will be earned at the end of one year.d.None of them.e.The annual percentage rate indicates the amount of interest including the effect of compounding.