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Instructional Video

Khan Academy: Annual Percentage Rate (Apr) and Effective Apr

Curated by ACT

The annual percentage rate (APR) that you are charged on a loan may not be the amount of interest you actually pay. The amount of interest you effectively pay is greater the more frequently the interest is compounded. In this video, we calculate the effective APR based on compounding the APR daily. [7:12]

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Concepts
compound interest, debt, interest, loans
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Additional Tags
credit card, khan academy, khan academy: annual percentage rate (apr) and effective apr, cost of credit
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Classroom Considerations
  • Knovation Readability Score: 3 (1 low difficulty, 5 high difficulty)
  • The intended use for this resource is Instructional