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Borrowing money from a bank or lending money comes with a price tag. Banks and financial organizations profit from the money that customers deposit in their accounts. They generate money by charging consumers who borrow money from them a percentage of the amount borrowed. We'll go through what APR is, the different forms of APR, and how to calculate it in this article.

Add the interest amount to the administrative fees.

Subtract the loan amount from the total (principal)

Divide the total number of days in the loan term by the total number of days in the loan period.

Multiply everything by 365. (one year)

To convert to a percentage, multiply by 100.

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Loindy

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