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what is Apr an APR a ka annual percentage rate reflects the true cost of a loan that youll pay each year lets break it down APR 8 including any transaction fees or additional costs and is calculated on an ongoing basis for example if you purchased $25 worth of ice cream for a month on your credit card with a 36 percent APR and did not pay off the $25 at the end of the month billing cycle you would owe an additional 74 cents small price to pay for those four gallons of MintChip right protip your credit card company your bank has to tell you what the APR will be before you sign up with them [Music] you