Investor Glossary-annual percentage rateInvestor Glossary-annual percentage rateInvestor Glossary-annual percentage rateInvestor Glossary-annual percentage rateInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Annual Percentage Rate

The HTML to link to this page
 

An annual percentage rate, often referred to by its acronym APR, is the yearly interest due on a loan, including interest and other fees, expressed as a percentage of the amount borrowed. Because the annual percentage rate incorporates all fees associated with the loan, the annual percentage rate can be used to determine the true cost of borrowing a given amount of money. The annual percentage rate is important as a standardized measure of the cost of borrowing money; the annual percentage rate allows for the comparability of interest rates across lenders. In fact, lenders are required by law to tell borrowers what their annual percentage rate would be on a loan. The annual percentage rate is calculated by multiplying the periodic interest rate by the number of periods in a year.



Rate this Annual Percentage Rate definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: real GDP, inflation, phantom income, liquidity ratio, per diem, retained earnings, FICO score, Key Rate Duration, Zero Cost Collar, deferred tax, covered put, labor relations, irrevocable trust, ex-dividend date, minority interest, option premium, command economy, 1031 exchange, 1035 exchange, 401a, dividends payable, risk management, current ratio, LIBOR, balance sheet, open position, VIX, implied volatility, EBITDA, in escrow, 144a, margin rate, stock market close, quality assurance, reverse mortgage, stock split, diluted share, wholly-owned subsidiary, required rate of return, average price per share, debt service coverage, APR, annual return, ex-dividend, cancelled check, deferred revenue, FTSE, limit order, class C shares


Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use