Question

Apr is a(n)_____?

A. Interest rate advertised by borrowers
B. Compounding interest rate
C. Daily interest rate
D. Interest rate advertised by lenders

Answer 1

Annual Percent Rate = APR

Answer 2

HINT: It relates to the people lending the money

Answer 3

In many countries, APR is a standardized rate of interest(Annual Percentage Rate) required by consumer protection agencies to be disclosed to clients and prospective clients.
Most of the time, and in the case of credit cards, the actual rate per period (usually month) equals the APR divided by the number of periods (for months, 12). This way, the effective rate is actually [(1+APR/12)^12-1] which is always higher than the APR.