Question

Sean is buying a new motorcycle and is looking for the best loan to pay for his purchase. What loan should he chose?

A.
Loan with the highest APY
 

B.
Loan with the highest APR
 

C.
Loan with the lowest APY
 

D.
Loan with the lowest APR

Answer 1

When someone talks about APR in relation to saving, what they really mean is the "periodic rate" or simply "the rate." It's important to note that APR is a term that applies to loans. While APY, or annual percentage yield, is a term that applies to deposit accounts. So for the given problem chose the lowest APR.