# APR

According to Wikipedia: The term annual percentage rate of charge (**APR**), corresponding sometimes to a nominal **APR** and sometimes to an effective **APR** (or EAPR), describes the interest rate for a whole year (annualized), rather than just a monthly fee/rate, as applied on a loan, mortgage loan, credit card, etc.

The plugin uses APR by default. Examples of repayment using APR are given below using the following parameters

Principle = $100

Interest = 5% APR

## SIMPLE

**Term = 1 year**

Interest = $100 x (5 x 1)/(100 x 1) = $5

**Term = 12 months**

Interest = $100 x (5 x 12)/(100 x 12) = $5

**Term = 2 years**

Interest = $100 x (5 x 2)/(100 x 1) = $10

**Term = 24 months**

Interest = $100 x (5 x 24)/(100 x 12) = $10

**Term = 6 months**

Interest = $100 x (5 x 6)/(100 x 12) = $2.5

## COMPOUND

**Term = 1 year**

Total= $100 x (1 + 5/100)^(1 / 1) = $105

**Term = 2 years**

Total= $100 x (1 + 5/100)^(2 / 1) = $110.25

**Term = 24 months**

Interest = $100 x (1 + 5/100)/(24 / 12) = $110.25

**Term = 6 months**

Interest = $100 x (1 + 5/100)/(6 / 12) = $102.47

**Term = 18 months**

Interest = $100 x (1 + 5/100)/(18 / 12) = $107.59

**Term = 104 weeks**

Interest = $100 x (1 + 5/100)/(104 / 52) = $110.25