What does Apr stand for?

APR is also an abbreviation for "Annual Principal Rate" which is sometimes used in the auto sales in some countries where the interest is calculated based on the "Original Principal" not the "Current Principal Due", so as the Current Principal Due decreases, the interest due does not. This section does not cite any sources.

What is the difference between nominal APR and effective APR?

The nominal APR is the simple-interest rate (for a year). The effective APR is the fee+ compound interest rate (calculated across a year). In some areas, the annual percentage rate (APR) is the simplified counterpart to the effective interest rate that the borrower will pay on a loan.

What is annual percentage rate of charge (APR)?

The term annual percentage rate of charge ( APR ), corresponding sometimes to a nominal APR and sometimes to an effective APR ( EAPR ), is the interest rate for a whole year (annualized), rather than just a monthly fee/rate, as applied on a loan, mortgage loan, credit card, etc. It is a finance charge expressed as an annual rate.

How do you calculate APR?

The APR can also be represented by a money factor (also known as the lease factor, lease rate, or factor). The money factor is usually given as a decimal, for example .0030. To find the equivalent APR, the money factor is multiplied by 2400. A money factor of .0030 is equivalent to a monthly interest rate of 0.6% and an APR of 7.2%.