Loan And Borrowing

Question 1

What is APR?

Answer 1

• APR stands for annual percentage rate

* It’s the annual rate charged for borrowing or earned through an investments

Question 2

What does the APR formula stand for?

I,m,Ak,tk,n

Answer 2

• C= loan sum
• i= the APR parameter
• m= amount of payments
• Ak= payments
• tk= payment time period measured in years
• n= amount of repayment

Question 3

What is AER?

Answer 3

• AER stands for Annual Equivalent Rate

* AER, is designed to make savings account easier to compare for a year

Question 4

What does the AER formula stand for?

Answer 4

• AER=(1+i/n)^n-1
• i= nominal interest rate (expressed as a decimal)
• n= number of compound periods within the investment