Final answer:
APR stands for Annual Percentage Rate and it represents the total cost of borrowing money, including both interest and fees, expressed as a yearly percentage.
Step-by-step explanation:
APR stands for Annual Percentage Rate and it represents the total cost of borrowing money, including both interest and fees, expressed as a yearly percentage. It is commonly used in relation to loans and credit cards to help consumers understand the actual cost of borrowing.
The APR takes into account not just the interest rate, but also any additional costs or fees associated with the loan. It allows borrowers to compare different loan offers and make informed decisions based on the true cost of borrowing.
For example, if you are comparing two credit cards, one with an APR of 15% and another with an APR of 20%, you know that the second card will be more expensive to use because it has a higher annual percentage rate.