APR
Annual percentage rate: the yearly cost of borrowing, stated as a percentage of the balance.
Dividing APR by twelve gives the monthly rate a card actually applies, which is how a stated rate becomes a dollar cost.
Often Confused With
- APY
- APR is the cost of borrowing; APY is the yield on savings and includes compounding.
Taught In
See Also
3.2.A.2 · 3.2.C.5