Nominal rate which is quoted to consumers on loans is considered as__________?
Correct answer: C. Annual percentage rate
- A. Loan rate of return
- B. Annual rate of return
- C. Annual percentage rate
- D. Local rate of returnCompare Investment Apps
Explanation
The nominal borrowing rate quoted to consumers, without treating intra-year compounding as a separate effective rate, is commonly stated as the annual percentage rate. Annual rate of return usually describes an investment rather than a loan quote.
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