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APR Explained - How To Work Out The Real Cost Of A Loan
Whether you take out a bank loan, a mortgage, a hire purchase agreement or a credit card, you will often find that the interest is calculated as an APR, or Annual Percentage Rate. This is the means to measure the proportion of the total amount borrowed, which is charged by the lender in a year. So the APR is a useful way of calculating the cost of a loan, disregarding other possible factors such as inflation and loan arrangement fees.
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