Annual Percentage Rate, or APR, represents how much rate is to be charged for borrowing or earned through an investment on an annual basis. APR is expressed as a percentage, and this percentage represents the yearly cost of funds over the term of the investment or spending. It basically explains the cost of borrowing.
For example, if you have a loan that has an APR of 10%, then you would pay $10 for every $100 you borrow annually.
