BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

BUSINESS MATHEMATICS

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

What is considered as annual rate and usually in percent form?

A	Time
B	Rate
C	Interest
D	Principal Amount

Explanation:

Detailed explanation-1: -The APR of a loan is the annual cost of the loan expressed as a percentage. It includes the interest rate and other miscellaneous costs of availing the loan. This gives you the true cost of borrowing per year, and is especially important since lenders may lure you with a low AIR but levy hefty additional charges.

Detailed explanation-2: -Annual Percentage Rate (APR) is the interest charged for borrowing that represents the actual yearly cost of the loan expressed as a percentage.

Detailed explanation-3: -An annual percentage rate (APR) is a broader measure of the cost of borrowing money than the interest rate. The APR reflects the interest rate, any points, mortgage broker fees, and other charges that you pay to get the loan. For that reason, your APR is usually higher than your interest rate.

There is 1 question to complete.