What is Annual Percentage Rate (APR)?

What is annual percentage rate (APR)?

Annual percentage rate (APR) is what you pay for borrowing, expressed as a single percentage that represents the actual yearly cost over the term of a loan. This includes any fees or additional costs associated with the transaction. It can also represent the amount earned over an investment.

This post originally appeared on DailyWorth on June 21, 2013

 

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