Annual Percentage Rate

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Also found in: Dictionary, Financial, Acronyms.
Related to Annual rate of return: Average Annual Rate of Return

Annual Percentage Rate

The actual cost of borrowing money, expressed in the form of a yearly measure to allow consumers to compare the cost of borrowing money among several lenders.

The Federal Truth-in-Lending Act (15 U.S.C.A. § 1601 et seq. [1968]) mandates the complete disclosure of this rate in addition to other credit terms.

Cross-references

Truth in Lending Act.

References in periodicals archive ?
Adding one to the rate of return, finding the geometric mean and then subtracting one to arrive at the annual rate of return easily remedies this
7 million, representing a 12% annual rate of return on our original investment.
So for Tom to reach his goal of $1,500,000 in savings in 10 years, he has to invest $87,105 per year and earn an annual rate of return of at least 7%.
The sale to Hunter Douglas, for an undisclosed sum, is expected to generate an annual rate of return of 61 per cent and 2.
Venture capitalists generally target a 60-80% annual rate of return on their investments, in part to make up for high failure rates.
The club's portfolio soared in 1995 and 1996, posting an average annual rate of return of 32.
4 percent, 10-year average annual rate of return was a measly 9.
The fund accumulation under this TDS plan will amount to $3,679 after 20 years, or $15,476 after 40 years, invested at a compound annual rate of return of 6%.
Over this 9 year 6 month period, the compound annual rate of return stands at 18.
The London company has recorded a tenfold increase in activity over the past six years and had produced a 35 per cent annual rate of return for its original BES shareholders.
According to the accounting firm Price Waterhouse, which did an audit of the club's books, the overall average annual rate of return for the club from its inception 14 years ago through 1997 was 15.
Benjamin Graham, widely considered the father of value investing, showed in a 1976 research study that applying value investment principles resulted in an annual rate of return of approximately 19% over the 50-year period from 1925 to 1975--well above the general market.

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