Question

Why is APR an important tool for consumers?

a. It allows consumers to borrow from more than one lender at the same time.
b. It allows consumers to compare the full cost of loans from different lenders.
c. It allows consumers to choose their level of down payment.
d. It provides an opportunity for consumers to become familiar with various interest calculators.
e. It provides consumers with negotiating skills to get lenders to reduce rates.

Answers

  1. The option B is correct. APR is important tool because It allows consumers to compare the full cost of loans from different lenders.
    According to the statement
    we have to explain all about the APR and tel that why it is important for the consumers.
    So, For this purpose,
    We know that the
    The term annual percentage rate of charge, corresponding sometimes to a nominal APR and sometimes to an effective APR.
    It is the interest rate for a whole year, applied on the loan etc. It is a finance charge expressed as an annual rate
    APR is the important tool for the consumers because of some reasons which are written below:
    APR is important because it can give you a good idea of how much you’ll pay to take out a loan.
    APR helps a customer determine the true cost of the loan, allowing them to compare many loans and choose the most advantageous one.
    So, The option B is correct. APR is important tool because It allows consumers to compare the full cost of loans from different lenders.
    Learn more about annual percentage rate here
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