Kizspy | Question: 41
(Choose 1 answer)
Which of the following statements is true of annual percentage rate (APR)?
A. The APR is similar to the quoted interest rate, which is a simple annual rate.
B. The APR calculation adjusts for the effects of compounding and, hence, the time value of money.
C. The APR is the true cost of borrowing and lending.
D. The APR takes compounding effect into account.
