Answer:
d. The APR helps compare loans with the same payback period, but with different monthly rates and different fees.
Step-by-step explanation:
A loan can be defined as an amount of money that is being borrowed from a lender and it is expected to be paid back at an agreed date with interest.
Generally, the financial institution such as a bank lending out the sum of money usually requires that borrower provides a collateral which would be taken over in the event that the borrower defaults (fails) in the repayment of the loan.
An annual percentage rate (APR) is an amount of money paid as interest by borrowers or earned on loans by lenders such as banks, expressed as a percentage of the amount borrowed or invested over a 12-month period i.e on an annual basis.
Generally, the annual percentage rate (APR) helps compare loans with the same payback period, but with different monthly rates and different fees.
