BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Principal (P)
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Interest (I)
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Rate (r)
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Maturity Value or Future Value (F)
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Detailed explanation-1: -APR stands for annual percentage rate, which is used for interest rates on consumer loans that the lenders demand from the borrowers. APY stands for annual percentage yield, which is used when interest is earned from funds deposited in banks.
Detailed explanation-2: -Annual percentage rate (APR) refers to the yearly interest generated by a sum that’s charged to borrowers or paid to investors. APR is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan or income earned on an investment.
Detailed explanation-3: -The term annual percentage rate of charge (APR), corresponding sometimes to a nominal APR and sometimes to an effective APR (EAPR), is the interest rate for a whole year (annualized), rather than just a monthly fee/rate, as applied on a loan, mortgage loan, credit card, etc.
Detailed explanation-4: -Put simply, APR is the cost of borrowing on a credit card. It refers to the yearly interest rate you’ll pay if you carry a balance, and it often varies from card to card. For example, you may have one card with an APR of 9.99% and another with an APR of 14.99%.