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Topic How exactly does APR work?
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By redfujiapples
On 04/09/01
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I've asked at the credit union, bank and among friends. No one is able to tell me how APR actually works as compared to an interest rate. Can anyone help and give me an example with both APR and a stated interest rate?
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By colin
On 04/10/01
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The Annual Percentage Rate figures all of the costs to finance, including interest and fees, and gives you an effective interest rate. APR is helpful for comparing loans with different rates and fees. For credit cards the APR is divided by 12 to arrive at a monthly rate, the monthly rate is multiplied by the applicable balance to calculate finance charges.
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your questions are answered by the gromco team and card users like you
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