Annual Percentage Rate (A.P.R.)

Definition:

The interest percentage of a loan, including all finance charges and other payments and credits, averaged over the course of a year.

Examples:

If you have a good credit rating, you may be able to get your credit card company to lower the annual percentage rate on your account.

Because this business has no problem with liquidity, and has a good relationship with its local suppliers, they are able to offer a very low annual percentage rate to customer who purchase the larger-ticket items.