Question

Keera is buying a new car and is looking for the best auto loan to pay for her purchase. What loan should she choose?
A. Loan with the highest APR
B. Loan with the highest APY
C. Loan with the lowest APR
D. Loan with the lowest APY

Answer 1

Hmm... i know APR usually doesn't take into account compound interest, but APY does. APY seems to give a better actual cost wrather than apr. Maybe D is best?

Answer 2

gimme a sec to think it out..

Answer 3

I was thinking it had to APY but I'm not sure, I'm new to learning this so I'm kind of stuck on all these questions :X

Answer 4

I'm gonna stick with D. When using APR the cost of compound interest is not included usually for car loans. Like I said earlier, APY takes that into account and produces a more accurate financing cost. That and I would want low interest on anything.

Answer 5

Ah it was wrong :/ It was C

Answer 6

That's the best I got. If that question is to much, as someone IRL.

Answer 7

Really?

Answer 8

Well my teach is telling me some BS lol. As long as you came to the right answer, its all good.

Answer 9

Lol. Yeah that's what it said because I put in D and it said it was incorrect and told me C

Answer 10

It's on a computer?

Answer 11

Yeah all my classes are online, math isn't my best subject & I'm pretty sure I just failed this assignment for the 4th time now. xD

Answer 12

Well C is the logical answer for the ignorant car buyers as it makes the price seem much less, When you really looking for a good financing interest, I'd suggest APY everyday it gives a better actual value.

Answer 13

glad I could be of some sort of help at least xD/

Answer 14

Lol thanks x]