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Annual Percentage Rate (APR)

Last Updated: November 14, 2006 | Related resource areas: Personal Finance

The periodic rate times the number of periods in a year. For example, a 5% quarterly return has an APR of 20%. APR is a yearly interest rate that includes all fees and costs you pay to a lender (such as a credit card company or financial institution) when you borrow money. By law, lenders are required to tell you the APR.


More information:

Financial Security: Consumer Credit, glossary

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