Define: Annual Percentage Rate (APR)

UK Accounting Glossary

Definition: Annual Percentage Rate (APR)


Quick Summary


The annual equivalent rate of return on a loan or investment in which the rate of interest and charges are specified in terms of an annual rate of interest. Most investment institutions are now required by law to specify the APR when the interest intervals are more frequent than annually.



What is the dictionary definition of Annual Percentage Rate (APR)?

Dictionary Definition


The annual equivalent rate of return on a loan or investment in which the rate of interest and charges are specified in terms of an annual rate of interest.

 


Full Definition


The annual equivalent rate of return on a loan or investment in which the rate of interest and charges are specified in terms of an annual rate of interest.

Most investment institutions are now required by law to specify the APR when the interest intervals are more frequent than annually.