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The APR is the amount extra that will have to be paid if there is an outstanding balance on a credit card.If the outstanding balance for a year is 100, the extra that would have to be paid is:13 % APR13/100 x 100 = 13 18 % APR18/100 x 100 = 18 As a consumer, the 13 extra to pay given by the 13 % APR is obviously better.As a credit card company, the 18 extra to be paid by the 18 % APR is obviously better.

It depends on the rate of interest. Right now (early 2014), a fairly typical rate of interest on a 5 year CD would be around 2% APR. At that interest rate you'd need to invest almost $4000 in order to have $5000 in twelve years. If by "make $5000" you meant "have $5000 more than I had to start with" rather than "have $5000 total", you'd need to invest $18640 today for your interest over twelve years to amount to $5000.

"APR" means "Annual Percentage Rate". When money is borrowed and not paid backimmediately, that's the piece that gets added on to it each year, as the price for theconvenience of not paying it back yet.If you're the borrower and you have someone else'smoney, then you want thelowest possible APR. That's on a credit card, a car loan, a home mortgage, etc.If you're the lender and somebody else has yourmoney, then you want the highestpossible APR. That's on a bank savings account, an investment, a CD, etc.

APR stands for annual percentage rate. That being the case, it does not matter whether the interest is compounded every day or every millisecond. The effect, at the end of a year is interest equal to 2.25 percent. So, 2000 at 2.25 percent compounded, for 4 years = 2000*(1.0225)4 = 2000*1.093083 = 2186.17

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