When you borrow money, you’ll also pay interest on top of the amount you borrowed.. Interest is the money the lender gets for loaning you the money. Read Next: 5 Subtly Genius Moves All Wealthy People ...

The APR, or Annual Percentage Rate, of a loan is the amount of interest you’ll be charged in one year for that loan. The APR is determined by the interest rate for your car loan. It also includes fees ...

Interest is one of the ways lenders make their money, and it’s what makes it worth it for them to give out loans. If you’re borrowing money, interest is the cost the bank charges you for the service.