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: The nominal APR is the simple-interest rate (for a year). The effective APR is the fee+compound interest rate (calculated across a year).In some areas, the annual percentage rate (APR) is the simplified counterpart to the effective interest rate that the borrower will pay on a loan. In many countries and jurisdictions, lenders (such as banks) are required to disclose the "cost" of borrowing in some standardized way as a form of consumer protection. The (effective) APR has been intended to make it easier to compare lenders and loan options. Multiple definitions of effective APR...

Overwhelming terminology often makes borrowing or lending money for the first time intimidating. This is especially true when comparing types of interest, as there are several easily-confused terms that sound similar but have particularly meaningful differences. Luckily, it’s not as complicated as i

In economics, inflation is a general increase of the prices of goods and services in an economy. This is usually measured using the consumer price index (CPI). When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money. The opposite of CPI inflation is deflation, a decrease in the general price level of goods and services. The common measure of inflation is the inflation rate, the annualized percentage change in a general price index. As prices faced by households do not all increase at the same rate, the consumer price index (CPI) is often used for this purpose. The employment cost index is also used for wages in the United States. There is disagreement among economists as to the causes of inflation. Low or moderate inflation is widely attributed to fluctuations in real demand for goods and services or changes in available supplies such as during scarcities. Moderate inflation affects economies in both positive and negative ways. The negative effects would include an increase in the opportunity cost of holding money...

Providing 401(k) plans has advantages for both business owners and employees. Learn about tax credits, exclusions, matching and more.