The APR is approximately double the add-on rate on an installment loan.

Name: The APR is approximately double the add-on rate on an installment loan.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is generally true. The annual percentage rate (APR) takes into account not only the interest rate, but also any fees associated with the loan. The add-on rate only takes into account the interest rate. Therefore, the APR will almost always be higher than the add-on rate on an installment loan.

The APR Is Approximately Double the Add-On Rate on an Installment