ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -With credit cards, though, the APR is just interest. You may have an annual fee or incur charges for balance transfers, cash advances, late payments and so on, but credit card issuers don’t include those in the APR. That’s because it’s impossible to predict which cardholders will incur which fees.
Detailed explanation-2: -The Annual Percentage Rate (APR) is the cost you pay each year to borrow money, including fees, expressed as a percentage. The APR is a broader measure of the cost to you of borrowing money since it reflects not only the interest rate but also the fees that you have to pay to get the loan.
Detailed explanation-3: -Why is it important to consider the APR when comparing credit card offers? When comparing credit card offers, you need to look at the APR because it affects how much you pay in interest if you carry forward balances from month to month.
Detailed explanation-4: -APR, or annual percentage rate, is your interest rate stated as a yearly rate. An APR for a loan can include fees you may be charged, like origination fees. APR is important because it can give you a good idea of how much you’ll pay to take out a loan.