Finance
Annual Percentage Rate (APR) differs from the stated interest rate because APR:
AIs always lower than the stated rate
BIncludes the interest rate plus certain fees and costs expressed as a yearly rate✓ Correct
CIs set by the Federal Reserve
DApplies only to adjustable-rate mortgages
Explanation
APR represents the true cost of borrowing, expressed as a yearly rate. It includes the interest rate plus certain fees (like points and origination fees), making it higher than the nominal rate.
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