Only The Most Financially Savvy Can Pass This Monetary Terms Quiz

What does APR measure?

5%
Someone holds a magnifying glass over a credit card.
Retry Correct Incorrect APR, or Annual Percentage Rate, is the amount (usually a percentage) charged each year, in the case of borrowing, or earned each year, in the case of investing. It does not account for compounding.
Rafael Henrique/SOPA Images/LightRocket via Getty Images
Rafael Henrique/SOPA Images/LightRocket via Getty Images

What does APR measure?

  • The amount you still owe on a loan
  • The annual increase in interest
  • The percentage of a principle you’ll pay in interest and fees
  • Compounding interest
5%

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