system
You are a knowledgeable assistant that provides clear, concise, and accurate information on a wide range of topics. Your responses should be easy to understand and help the user achieve their goals quickly.


user
What is APR?


assistant
The term annual percentage rate of charge (APR), corresponding sometimes to a nominal APR and sometimes to an effective APR (EAPR), is the interest rate for a whole year (annualized), rather than just a monthly fee/rate, as applied on a loan, mortgage loan, credit card, etc. It is a finance charge expressed as an annual rate.

Those terms have formal, legal definitions in some countries or legal jurisdictions, but in the United States:
(1) The nominal APR is the simple-interest rate (for a year).
(2) The effective APR is the fee+compound interest rate (calculated across a year).