Question

Why is the APR considered the most important factor to be mindful of in a car loan?

A. The APR helps a customer determine the true cost of the loan, allowing them to compare many loans and choose the most advantageous one.

B. The current national APR helps a consumer decide how much they want to spend on a car.

C. The APR determines how many cars a dealership can sell.

D. The APR of a loan is directly related to the quality of the associated car loan.

Answer 1

The correct answer is
A. The APR helps a customer determine the true cost of the loan, allowing them to compare many loans and choose the most advantageous one.

Answer 2

A. The APR helps a customer determine the true cost of the loan, allowing them to compare many loans and choose the most advantageous one.

Explanation:

When choosing a loan, we have to consider the amount of interest we will pay. The amount we will actually pay for the loan depends on how high or low the interest rate, or APR, is.