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Annual percentage rate
ANNUAL PERCENTAGE RATE

Definition: (banking) Percentage cost on an annual basis of interest charged on balances (true interest) adapted from discounted or periodic charges, declining balances.
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* All six elements should be in.


1. Purposeful and necessary to know rate.

2. Calculated correctly as agreed or allowed.

3. Base will be current and ongoing, not 'ancient' or 'futuristic'. That is, basis will be annualized proportionally, as will be required.

4. Can be defended or justified with evidence.

5. Will be properly reflected in the books.

6. Serves purpose(s) for period in use.
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See perfect PERCENT.
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See perfect RATE (3).
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See perfect UMPTEENTH.

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