APR (annual percentage rate) 0
The APR or Annual Percentage Rate is a mathematical formula that incorporates both the nominal interest rate and fees and the time of the operation, regardless of whether it is a loan or an investment.
SAD has become an essential element to compare different financial products such as savings, investments and loans, and that helps us know how lucrative will the product during the period of one year.
For many, the APR is the best financial guidance of the Spanish population.
The calculation of the APR is based on the composite interest rate on the assumption that the interest earned is reinvested at the same interest rate, but when applying a variation calculation can be slightly different depending on which banking product question.
As for savings products by expert states that “If you invest 1 million euros for a period of 1 year at a nominal rate of 4% at the end of the year, that money has been an interest of 40.000 euros. But instead of charging those 40,000 euros to the bank or box end offers the ability to collect that money on a quarterly or half the money be available before, is an interest and that is the APR, the sum of the values future flows of interest. ” Read the rest of this entry →