What is the annual percentage rate (APR) on a credit card?

Responses

the expected return on the credit card company's investments

the expected return on the credit card company's investments

the percentage of a person's income they can spend each year

the percentage of a person's income they can spend each year

the credit card's maximum spending limit

the credit card's maximum spending limit

the amount of interest charged on unpaid balances

1 answer

The annual percentage rate (APR) on a credit card refers to the amount of interest charged on unpaid balances. This rate indicates how much you will pay in interest if you carry a balance from one month to the next.