Annual percentage rate
Annual percentage rate (better known by its acronym, APR; alternatively known as interest rate per year, interest rate earned per year; 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. Commonly , Interest rate and rate of return mean APR as well.
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.
