On an installment loan,the APR will always be higher than the add-on rate applied.

Name: On an installment loan,the APR will always be higher than the add-on rate applied.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is because the APR includes the interest as well as any fees or charges associated with the loan, while the add-on rate only applies to the principal amount borrowed. Therefore, the APR will be a more accurate representation of the true cost of the loan over time.

On an Installment Loan,the APR Will Always Be Higher Than