Explain why the APR does not compare loans for different lengths of time

Mathematics

1 answer:

Usimov [2.4K]2 years ago

7 0

Answer:

APR does not tell you how long your rate is locked for. A 15-year loan may have a lower interest rate, but could have a higher APR, since the loan fees are amortized over a shorter period of time. It is not wise to compare a 30-year loan with a 15-year loan using their respective APRs.

Step-by-step explanation:

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Step-by-step explanation:

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