ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -You may have seen the term annual percentage rate (APR) while shopping for a credit card, mortgage, car loan or personal loan. An APR is a number that represents the total yearly cost of borrowing money, expressed as a percentage of the principal loan amount.

Detailed explanation-2: -Annual percentage rate (APR) refers to the yearly interest rate you’ll pay if you carry a balance on your credit card. Some credit cards have variable APRs, meaning your rate can go up or down over time.

Detailed explanation-3: -The Annual Percentage Rate (APR) is the cost you pay each year to borrow money, including fees, expressed as a percentage. The APR is a broader measure of the cost to you of borrowing money since it reflects not only the interest rate but also the fees that you have to pay to get the loan.

Detailed explanation-4: -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-5: -APR, which stands for annual percentage rate, is the yearly cost of borrowing money. If you borrow $1, 000 for a year at a 20% APR, the total to pay back would be $1, 200.