APR is the same as the interest rate.
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A. B. C. D.B
The answer to this question is "B. False."
While the interest rate and APR are related to each other, they are not the same thing.
The interest rate is the percentage of the principal amount that a lender charges as interest to the borrower. This is the cost of borrowing money and is calculated on an annual basis. For example, if you borrow $10,000 at an interest rate of 5%, you would owe $500 in interest per year.
The APR, on the other hand, is the annual percentage rate, which is the cost of borrowing money expressed as a yearly rate. The APR includes not only the interest rate, but also any other fees or charges associated with the loan, such as origination fees, closing costs, and points. The purpose of the APR is to provide borrowers with a more accurate representation of the total cost of borrowing money, including all associated fees.
So, while the interest rate is only the cost of borrowing money expressed as a percentage of the principal amount, the APR is a more comprehensive measure that includes all costs associated with borrowing.
Therefore, it's incorrect to say that the APR is the same as the interest rate.