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What is APR?
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APR stands for Annual Percentage Rate. It is the annual interest rate charged for borrowing or earned through an investment, and it represents the actual yearly cost of funds over the term of a loan. It includes any fees or additional costs associated with the transaction.
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Can you write a poem about APR?
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In the world of finance, APR is the key,
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A number that tells you what you'll pay, or earn, you see.
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It's the annual rate, not just a one-time fee,
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In loans and investments, it's a crucial decree.
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It includes all fees, no matter how small,
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A clear picture of cost, for you to install.
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Whether borrowing or saving, APR is the guide,
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To make informed decisions, with confidence, you'll abide.
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Now explain APR to me like I'm 5 years old
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Sure! Imagine you have a piggy bank where you save your money. Now, if you want to borrow some money from a friend, they might ask you to pay them back with a little extra. This extra amount is like the APR. It's the extra money you have to pay back, on top of the amount you borrowed. It's like a small fee for using their money.

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