If you are a borrower,which of the choices would lower your APR?
A)Repay your loan in monthly installments
B)Repay your loan in quarterly installments
C)Repay your loan in semiannual installments
D)Repay your loan in annual installments
E)You would be indifferent to how frequent your loan payments are.

Question

Quizplus · Accepted Answer

Repaying the loan in annual installments will lower the APR as the lender will earn interest for a longer period of time, thus reducing the overall interest rate charged. Repaying in more frequent installments (monthly, quarterly, semiannually) means the lender earns interest faster, resulting in a higher APR.

If You Are a Borrower,which of the Choices Would Lower