contestada

Annual percentage rates (APRs) are computed using Group of answer choices None of the options are correct. best estimates of expected real costs. simple interest. either simple interest or compound interest. compound interest.

Respuesta :

Answer: either simple interest or compound interest.

Explanation:

The annual percentage rate is the yearly interest rate that is charged to the borrowers and also paid to the investors. Annual percentage rate are computed using either simple interest or compound interest.

It should be noted that the annual percentage rate is expressed as a percentage and it represents actual annual cost of funds for a loan or an income that is earned on an investment.