Annual Percentage Rate (APR) | Definition, Calculation, & Types
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Annual Percentage Rate (APR) | Definition, Calculation, & Types
To understand how APR is calculated, let’s say that you were to take out a loan of $10,000 at 10% interest, with a term of 10 years that will be paid back at the end of the term. That would make your annual interest expenses $1,000 per year. Let’s also assume your bank has included fees associated with the loan totalling $500. To get the ...
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