Why an annual rate. I'm only borrowing for a month or two. When lenders advertise loans, they must show the APR by law. People borrow money for different lengths of time, so the annual percentage rate gives a standard way of comparing loan costs. It doesn't mean the lender will actually lend you money for a year, but it's the standard for comparing deals.
If you pay back your loan in less than a year, you'll pay less than the annual rate in interest. I'm not a maths whizz, how can I understand APR.
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