Business Terms and Jargon Explained

What is APR

APR stands for Annual percentage rate. Usually on a loan the interest is expressed as a percentage for the year. E.g. you get a 1000 loan with a APR of 10% for one year. The interest for the year will be 100 being 10% of 1000. The total amount to pay back would be 1100. Therefore the monthly repayments would be 1100 divided by 12 = 91.67

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Term created / updated 2005-07-16 23:12:15

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