# LeoGlossary: Annual Percentage Return (APR)

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10 months ago

Jul 16 2022 2:02 am

- 1 minutes readThe cost to borrow money. It is the yearly generated by the interest charged on the amount loaned.

**APR** is absent any compounding effects.

The formula is simply to divide the sum total of the interest by the amount of the loan or investment.

APR applies to:

- credit cards
- mortgages
- car loans
- student loans

The rate is applied on a yearly basis which can then be divided into quarterly or monthly segments. It is charged to borrowers and paid to investors.

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