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.