So for money 1 is 1p in the pound. 50 is 50p in the pound. A loan at 10 interest per year charges 10p for every pound borrowed every year BBC 98444 cash advance near About percentages. A simple way of thinking of APR is how many pence it would cost you to borrow each pound, per year. So for instance at 40 APR, on each pound borrowed you would pay 40p a year. At 400 APR, on each pound borrowed you would pay 400p or ВЈ4 a year.

At 4000 APR, you would pay 4000p a year, that's ВЈ40 on each pound borrowed. Percentages are out of a 100 aren't they.

How can an APR be over 100, like 4670. An APR of over 100 just means that if you were to borrow for a year you would be charged more than 100 of the original loan.

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