annual percentage rate

noun

: a measure of the annual percentage cost of consumer credit (as in installment buying or a charge account) that is required by law to appear on statements of credit accounts and is variously computed but always takes into consideration the amount financed, the amount of the finance charges, and the schedule of repayment
abbreviation APR

Word History

First Known Use

1969, in the meaning defined above

Time Traveler
The first known use of annual percentage rate was in 1969

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Cite this Entry

“Annual percentage rate.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/annual%20percentage%20rate. Accessed 28 Apr. 2024.

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