APR

APR stands for Annual Percentage Rate. It is a financial term used to describe the yearly interest rate charged on borrowed money or earned through an investment, expressed as a percentage. APR is a crucial metric in understanding the cost of a loan or the return on an investment. Unlike simple interest rates, APR includes any additional fees or costs (like loan origination fees) associated with the transaction, making it a more comprehensive measure of total borrowing costs or investment returns. It helps consumers compare different loan offers or investment products more effectively, as it standardizes the way interest and fees are presented. APR is commonly used in loans, credit cards, and other financial products to give borrowers a clearer picture of what they will pay over a year.