What’s APR Interest?
Interest rates play a crucial role in the financial world, influencing everything from borrowing costs to investment returns. One of the most common terms you’ll encounter when dealing with loans or credit is “APR,” which stands for Annual Percentage Rate. But what exactly is APR interest, and why is it important?
In simple terms, APR interest is the cost of borrowing money over one year, expressed as a percentage. It represents the total amount of interest you’ll pay on a loan or credit card balance, taking into account the principal amount, the interest rate, and any additional fees or charges. Understanding how APR interest works can help you make informed financial decisions and avoid unexpected expenses.
