The correct answer is C. annual percentage rate.
The annual percentage rate (APR) is the total cost of borrowing money expressed as a yearly rate. It includes the interest rate, any fees charged by the lender, and any other costs associated with the loan. The APR is used to compare different loans and to determine how much the loan will cost you over time.
The APR is calculated by taking the interest rate and adding any other fees or costs associated with the loan. The interest rate is the amount of money you pay the lender for the use of their money. The fees charged by the lender can include origination fees, application fees, and late payment fees. Other costs associated with the loan can include appraisal fees, title insurance fees, and property taxes.
The APR is a useful tool for comparing different loans. It allows you to see the total cost of the loan, not just the interest rate. This can help you choose the loan that is right for you.
Option A, loan rate of return, is incorrect because the APR includes more than just the interest rate. It also includes any fees charged by the lender and any other costs associated with the loan.
Option B, local rate of return, is incorrect because the APR is not specific to any particular location. It is the same for all borrowers, regardless of where they live.
Option D, annual rate of return, is incorrect because the APR is not the same as the annual rate of return on an investment. The annual rate of return on an investment is the amount of money you earn on your investment over a year, expressed as a percentage. The APR is the total cost of borrowing money expressed as a yearly rate.