A Common Criticism of the Annual Percentage Rate (APR) Is

question 1

Multiple Choice

A common criticism of the annual percentage rate (APR) is that it usually understates the true cost of borrowing. The APR may understate the cost of borrowing because it assumes:

• A) interest rates will always rise
• B) the loan always goes to maturity
• C) the actual life of the loan is shorter than maturity
• D) upfront fees should be ignored

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The idea that businesses should contribute to the welfare of society and not be solely focused on maximizing profits.

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