An annual percentage

**rate**(**APR**) is a broader measure of the cost to you of borrowing money, also expressed as a percentage**rate**. In general, the**APR**reflects not only the**interest rate**but also any points, mortgage broker fees, and other charges that you pay to get the loan.What is APR and how does it work?

The annual percentage rate or APR is a financial term that is used by lenders to let you know how much interest you are being charged on a yearly basis for your loan. For example, on a $10,000 car loan at an

**8 percent**APR you would pay approximately $800 in one year in interest for the loan.What is APR example?

$212,581.36. 3. Know that

**APR**can be broken down into monthly or daily interest payments.**APR**is the annual rate you pay on credit or loans. For**example**, if you take a $1,000 loan, and your**APR**is 10%, at the end of the year you'll owe $100 (10%) of your $1,000 premium.