Question

Which description defines the term APR?

It is the yearly rate of interest that you pay for credit card use.



It is the monthly rate of interest that you pay for credit card use.



It is the daily rate of interest that you pay for credit card use.

Answer 1

APR means annual percentage rate so the correct answer is:
It is the yearly rate of interest that you pay for credit card use.

Answer 2

The correct option is A. It is the yearly rate of interest that you pay for credit card use.

Explanation:

APR is an abbreviated form of Annual Principal Rate.

As the name indicates Annual, It means it is the yearly rate.

A. It is the yearly rate of interest that you pay for credit card use.

This option is true as APR is the annual principle rate.

B. It is the monthly rate of interest that you pay for credit card use.

This option is rejected as APR is not monthly rate, on the other hand it is Annual rate.

C. It is the daily rate of interest that you pay for credit card use.

This option is rejected as APR is not daily rate, on the other hand it is Annual rate.

Thus, The correct option is A. It is the yearly rate of interest that you pay for credit card use.