APR, or Annual Percentage Rate, is the yearly interest rate charged by a lender when you take out a personal loan.
Here's how to calculate APR:
Formula: APR = [{(Fee + Interest) / Principal} / n] 365 100
- Interest: Total interest paid over the life of the personal loan
- Principal: The amount of the personal loan
- n: Number of days in the personal loan term
This formula helps you understand the total cost of borrowing over a year.