How does apr determine the true cost of a loan?

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Celine Littel asked a question: How does apr determine the true cost of a loan?
Asked By: Celine Littel
Date created: Thu, Apr 1, 2021 7:46 PM
Date updated: Wed, Sep 21, 2022 1:42 PM

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Top best answers to the question «How does apr determine the true cost of a loan»

In short, the APR is a calculation used to determine the true cost of a loan, otherwise known as the cost of borrowing, represented annually… The APR addresses this issue by including most of the fees lenders charge during the loan transaction. These fees are then rolled into the interest rate to come up with the APR.

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