:Could some one explain Apr % and other things like this?


:Could some one explain Apr % and other things like this?

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APR stands for Annual Percentage Rate. It is a measure of the total cost of borrowing money over a year, including any fees or charges associated with the loan.

For example, if you borrow $100 with an APR of 10%, you will have to pay back a total of $110 at the end of the year. The extra $10 is the cost of borrowing the money, which includes the interest rate and any other fees associated with the loan.

Other terms that are commonly used in relation to borrowing money include:

Interest rate: This is the percentage of the loan amount that you will have to pay back as interest over the life of the loan.

Principal: This is the amount of money that you borrowed.

Collateral: This is something that you put up as security for the loan. If you are unable to pay back the loan, the lender can take possession of the collateral.

Credit score: This is a number that represents your creditworthiness, or your ability to pay back loans. A higher credit score indicates that you are less of a risk to lenders and may qualify you for lower interest rates.