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While APR is a more accurate estimation of the total cost of a loan than the nominal interest rate, it is limited because it only considers a simple interest rate. If the interest compounds on a smaller time frame than annually (such as monthly or semi-annually), the actual interest paid will be higher than the APR advertised. Factoring in ...
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Do you know what APR means? 🤔 If you’re thinking about taking out a loan or a credit card, make sure you know how much your borrowing will really cost you over the year. Find out more here: tsb.co.uk/money-confidence/what-is-apr/ #MoneyConfidence | TSB
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