2007-05-23 13:09:56 · 3 answers · asked by dbird139 1 in Business & Finance ➔ Credit
The APR is the Annual Percentage Rate. If you had a loan of $100 for one year at a rate of 5%, you would pay approximately $5 interest to use their money. Obviously this is oversimplified to give you the idea. If you were making payments each month you would actually be paying interest on the unpaid balance each month. Since we prefer that our payments are the same every month, the amount that goes toward the principle changes each month.
2007-05-23 13:51:05 · answer #1 · answered by SPATTMAN 3 · 0⤊ 0⤋
APR stand for annual percentage rate which is the interest rate you pay during the year. The higher the more you owe and the lower the less.
2007-05-23 13:14:42 · answer #2 · answered by HOWARD I 1 · 0⤊ 0⤋
That's the interest rate - so the higher the APR, the higher your interest which means your payment is higher.
2007-05-23 13:17:22 · answer #3 · answered by Judy 7 · 1⤊ 0⤋