BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -When interest rates are stated or given for loan repayments, it is not assumed that they are the annual percentage rates (APRs) unless specifically stated otherwise. The borrowing rate for real estate is more than the borrowing rates for autos, boats and VISA Reward Credit Cards.

Detailed explanation-2: -The APR can be referred to as a promised annual percentage rate. Although an APR is quoted on an annual basis, interest can be paid quarterly. Although an APR is quoted on an annual basis, interest can be paid monthly but never daily.

Detailed explanation-3: -Periodic rate is the rate charged by a lender each period. It can be quoted as a rate per period, say semiannually, per quarter or per month. For example, a bank could charge 1% per month for a credit card loan.

Detailed explanation-4: -The interest rate is the amount a lender charges a borrower and is a percentage of the principal-the amount loaned. The interest rate on a loan is typically noted on an annual basis known as the annual percentage rate (APR).

Detailed explanation-5: -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.