BANKING AFFAIRS

Detailed explanation-1: -An APR is a number that represents the total yearly cost of borrowing money, expressed as a percentage of the principal loan amount. The APR on a loan or credit card aims to offer a complete picture of how much it costs to borrow money.

Detailed explanation-2: -Step 1: Find your current APR and current balance in your credit card statement. Step 2: Divide your APR rate by 365 (for the 365 days in the year) to find your daily periodic rate. Step 3: Multiply your current balance by your daily periodic rate.

Detailed explanation-3: -APR is the annual cost of a loan to a borrower-including fees. Like an interest rate, the APR is expressed as a percentage. Unlike an interest rate, however, it includes other charges or fees such as mortgage insurance, most closing costs, discount points and loan origination fees.

Detailed explanation-4: -A 24% APR on a credit card is another way of saying that the interest you’re charged over 12 months is equal to roughly 24% of your balance. For example, if the APR is 24% and you carry a $1, 000 balance for a year, you would owe around $236.71 in interest by the end of that year.

Detailed explanation-5: -While your interest rate is the percentage of interest you pay on a loan, your APR includes your interest rate along with any other fees or expenses you’ll pay your lender. Some of the most common additional fees are brokerage fees, private mortgage insurance and discount points.