Finance glossary
APR
Definition
Annual Percentage Rate, the yearly cost of borrowing including fees.
APR expresses the total annual cost of a loan, including interest and certain fees, as a single percentage, making loans easier to compare. It does not account for compounding within the year, so it can understate the true cost relative to APY.
In a sentence
The credit card's 22% APR meant carrying a balance got expensive fast once fees were included.
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