Annual percentage rate (APR)

The APR is the periodic rate multiplied to the number of periods in a year. This measures the value of your monthly, or quarterly interest rates in a year. As an example, a credit card with an annual percentage rate of 12% has a periodic rate of 1% per month, or 3% per quarter.  Conversely, a 3% quarterly return has an annual percentage rate of 12%. This helps investors and debtors measure the impact of their loans and investments through the year.

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