APR, a rate advertised by lenders is typically lower than APY. The correct answer is D.
What is APR?
APR is an acronym for annual percentage rate, it is considered as a cost of borrowing money which is calculated on a percentage that any individual pay each year on their loan. It does not only include the rate of interest but also the fees you must pay to obtain the loan.
APY is an acronym for annual percentage yield, which is considered the actual rate of return on the investment after considering the effect of investment returns.
APR is a rate advertised by lenders that is typically lower than APY as the cost of overall borrowing is lower, and the accounts of APR are also lower. If the difference between APR and APY is higher, the frequency with which interest compounds also increases.
Therefore, option D lenders and lower is the appropriate answer.
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