Annual percentage rate

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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.

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