Definition:Annualized Percentage Rate
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Definition
The annualized percentage rate is the true cost of borrowing money from a lender.
Also known as
Annualized percentage rate is also known by its abbreviation APR.
Also see
- Results about annualized percentage rate can be found here.
Historical Note
The annualized percentage rate was introduced as a concept in $1977$ in the UK in order to provide customers of financial services a reliable basis for comparison of the products of the various lenders.
Before its introduction, it was commonplace for lenders to present their products in ways which made them look misleadingly good.
Sources
- 2014: Christopher Clapham and James Nicholson: The Concise Oxford Dictionary of Mathematics (5th ed.) ... (previous) ... (next): annualized percentage rate (APR)