APR

Annual percentage rate: the yearly cost of borrowing, stated as a percentage of the balance.

Dividing APR by twelve gives the monthly rate a card actually applies, which is how a stated rate becomes a dollar cost.

Often confused with

APY: APR is the cost of borrowing; APY is the yield on savings and includes compounding.

Taught in

3.2 Borrowing, Credit, and Debt

See also

3.2.A.2 · 3.2.C.5