What is Annual percentage rate (APR)?

The annual percentage rate, or APR, is the yearly cost of borrowing shown as a percentage. In many countries it also includes certain fees, so it is the figure lenders must show for comparing one loan or card with another.

Why Annual percentage rate (APR) matters

Comparing each debt's APR with an expected investment return is the core of the debt or invest decision.

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Lessons that use this term

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