A. APR is short for Annual Percentage Rate, which is the interest you're charged over a 12-month period. For instance, a card with 24% APR costs 2% per month on balances that you carry from month to month. But what's tricky about credit cards is that a single account can have several different APRs.
Beside this, what does APR mean monthly?
An annual percentage rate (APR) is the annual rate charged for borrowing or earned through an investment, and is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan.
What is 20% APR monthly?
Your APR of 20% will be divided by 12 to reveal the monthly interest rate—20/12 equals 1.667% As a result, monthly interest on a balance of $1000 with a 20% APR= $1,000X1.01667= $1,016.67. This calculation simply means that you will pay an additional $16 on a balance of $1,000 with an APR of 20%.
What does 76.0% APR mean?
A credit card's interest rate is the price you pay for borrowing money. For credit cards, the interest rates are typically stated as a yearly rate. This is called the annual percentage rate (APR). On most cards, you can avoid paying interest on purchases if you pay your balance in full each month by the due date.