Which of the following is true A APR is an IRR of a CFS M AA

Which of the following is true: A. APR is an IRR of a CFS (M, -A.,-A) where M is the loan amount and A is the monthly payment (not including fees). B. APR is always greater or equal to the advertised interest rate. C. If other loan parameters are the same, APR is not affected with the number of points increase. D. Amortization of all fees increases the loan interest rate O c O D O A&B; OA&C; o A&D; B&D; C&D;

Solution

Only option D is correct

This is because APR is lesser than the IRR of the cash flows, and APR is lesser than the advertized rate