5)Which of the following is a true statement?

Select one:

a. The APR on a loan requiring monthly payments is the annual interest rate you actually pay.

b. With monthly compounding, the APR will be smaller than the effective annual rate.

c. An APR is the interest rate per period divided by the number of periods per year.

d. When comparing investments it is best to rely solely on quoted rates.

e. Compounding will typically not lead to differences between quoted and effective rates.