What is the APR for the Navy Federal Credit Union loan?

The Annual Percentage Rate (APR) represents the yearly interest rate charged for borrowing or earned through an investment, which includes any fees or additional costs associated with the loan. In this case, the correct answer of 1.25% likely reflects the standard practices and terms associated with loans offered by Navy Federal Credit Union at the time referenced.

The APR of 1.25% indicates a cost of borrowing that factors in both the base interest rate and any associated fees that may apply to the loan. This percentage allows borrowers to understand the true cost of the loan over a year, providing clarity on what the total paid will be when considering both interest and any additional charges.

Understanding APR is crucial for making informed financial decisions, particularly as it allows comparisons between different financial products. This understanding helps members of Navy Federal Credit Union evaluate whether they are receiving a competitive rate relative to other lenders or financial institutions.