annual percentage rate

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The true annual rate of interest charged for a loan. Lenders usually increase the return on their money by compounding the interest payable on a loan to that loan on a monthly or even daily basis. This means that each time that interest is payable on a loan it is charged not only on the initial sum (principal) but also on the interest previously added to that principal. As a result, APR is usually approximately double the flat rate of interest, or simple interest.

The distinctive pattern in the hoist is designed to look like woven cloth. Effective date: 7 June 1995. >>