If an individual or a family can afford both the principal and the interest a lender proposes to charge on a loan, they seem little influenced by the reported size of the APR on that loan.

Question

Quizplus · Accepted Answer

Research and consumer behavior studies suggest that while affordability of the principal and interest payments is a primary concern for borrowers, many do not fully understand or consider the APR (Annual Percentage Rate), which includes not just the interest rate but also other charges associated with the loan. This lack of understanding or consideration can lead to indifference about the APR's size as long as the monthly payments are manageable.

If an Individual or a Family Can Afford Both the Principal