apr

[hustle1981]

What does APR mean? and how is it worked out?

[NORMANTHEDOG]

annual percentage rate, i think

[Didwot]

Yes it is Annual Percentage Rate. It is intended to give you a reasonable view of the true cost of borrowing, and in addition to the interest, charges and fess are added itno the equation. To take a simple example if yoiu borrowed �100, but had to pay �10 upfront fees and �10 interest at the end of the year interest then the APR would be something
like 20%. The calculations are sometimes complex, and can produce resullts that look odd.

[sponsmith]

Yes, annual percentage rate.
Its the rate you pay in interest for credit, or recieve for savings over a 12 month period.
So if you borrowed �100 at a fixed rate of 10% over a repayment term of a year, then you would pay �10 in interest.
If the APR was 6.4% then the interest would be �6.40p

[sponsmith]

I think me and didwot were replying at the same time.
I'm not being a copycat...honest!

[-Zorro-]

April