Difference between revisions of "Annual percentage rate"
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| − | [[Annual percentage rate]] (better known by its acronym, [[APR]]) is the nominal annual interest rate. | + | [[Annual percentage rate]] (better known by its acronym, [[APR]]; alternatively known as [[interest rate per year]], [[interest rate earned per year]]; [[interest rate]] and [[rate of return]] commonly means the same; in the formulas also referred as [[I/YR]], ''I'', ''[[i]]'', and ''[[r]]''; hereinafter, ''APR'') is the nominal annual interest rate or the rate of return calculated for a given year. |
Revision as of 08:48, 4 December 2019
Annual percentage rate (better known by its acronym, APR; alternatively known as interest rate per year, interest rate earned per year; interest rate and rate of return commonly means the same; in the formulas also referred as I/YR, I, i, and r; hereinafter, APR) is the nominal annual interest rate or the rate of return calculated for a given year.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- APR. The nominal annual interest rate is also called the annual percentage rate.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
