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In most countries, consumer credit legislation demands that lenders provide potential borrowers with one or more measures of the cost of a loan. The most

In most countries, consumer credit legislation demands that lenders provide potential borrowers with one or more measures of the cost of a loan. The most common measure is the annual percentage interest rate (APR) charged on a loan.

Can we rely on annual percentage rate (APR) to distinguish between two loans? Illustrate your answer with algebraic or numerical examples.(The guide wordcount for question is 500 words.)

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