Final answer:
The APR comparisons are only meaningful when the number of compounding periods per year is provided, as the frequency of compounding impacts the total cost of the loan.
Step-by-step explanation:
The APR is meaningful for comparisons only when the number of compounds per year is given. Annual Percentage Rate (APR) is a measure that takes into account not just the interest rate but also any additional charges or fees to reflect the total cost of a loan on an annual basis. Comparing APRs is most effective when you know how often the interest is being compounded within a year since this affects the overall cost of borrowing. For instance, if one loan compounds interest monthly and another compounds annually, even if they have the same stated interest rate, their APRs would not be directly comparable without adjusting for the difference in compounding frequency.