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7:12
Khan Academy
Sal Khan
Khan Academy
APR stands for Annual Percentage Rate. It's the yearly interest rate you pay on a loan or credit card. However, a credit card's advertised APR isn't the true interest rate because it compounds daily. Learn how to calculate the effective APR to find a card's true interest rate.
Feb 20, 2011
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2.4K views · 22 reactions | APR vs. APY: Know the difference! Annual Percentage Rate (APR) shows the cost of borrowing, including fees, while Annual Percentage Yield (APY) shows the interest earned on savings, including compounding. Both are crucial for making informed financial decisions. To learn more, visit https://bit.ly/3LA4ydC. | KeyBank | Facebook
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Oct 9, 2016
Let’s break down interest rate vs. APR—because they’re not the same thing. 💸 Your interest rate is what the lender charges to borrow money. 📊 Your APR (Annual Percentage Rate) includes the interest rate plus additional fees like closing costs and mortgage insurance. When comparing loans, APR helps you understand the total cost. That “low rate” might not be the better deal if it comes with stacked fees. Let’s walk through the numbers together so you can make the smartest choice. ➡️ lenderforlif
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