APR (Annual Percentage Rate)

APR, or Annual Percentage Rate, represents the cost of borrowing or the return on investment expressed as a yearly rate. It includes not just the interest charged on a loan, but also any additional fees or costs associated with the loan agreement. This makes APR a useful tool for comparing different loan offers or investment opportunities, as it gives a clearer picture of the total cost or return over a year. A lower APR generally indicates a more favorable borrowing cost, while a higher APR can signal more expensive loans.