Abstract
The annual percentage rate (APR) allows several credit offers with the same fixed interest periods to be compared. When calculating the effective annual interest rate, fees such as processing fees and discounts are included in addition to the nominal annual interest rate. Sometimes the APR corresponds to the nominal APR, the simple-interest rate for a year, and sometimes to the effective APR, the fee and compound interest rate calculated across a year.
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© 2023 The Author(s), under exclusive license to Springer-Verlag GmbH, DE, part of Springer Nature
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Peren, F.W. (2023). Annual Percentage Rate. In: Financial Math for Business and Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-67646-2_2
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DOI: https://doi.org/10.1007/978-3-662-67646-2_2
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