@surjithayer

Cassidy is buying a house and is looking for the best home loan to pay for her purchase. What loan should she choose?

A. Loan with the highest APY
B. Loan with the highest APR
C. Loan with the lowest APY
D. Loan with the lowest APR

Question

@surjithayer 

Cassidy is buying a house and is looking for the best home loan to pay for her purchase. What loan should she choose?

 		A.	Loan with the highest APY
 		B.	Loan with the highest APR
 		C.	Loan with the lowest APY
 		D.	Loan with the lowest APR

anonymous · Answer

i have no clue

tkhunny · Answer

#1 - It's a loan.  Why would "highest" make any sense at all.
#2 - What do APY and APR stand for.  The answer is in the definitions.

tkhunny · Answer

It is a very poorly understood concept that APR is of very little value.  No direct comparison can be made with only competing APRs.  Compounding methods are included in APY and this creates a useful comparison.

anonymous · Answer

APEX: Loan with the lowest APR