APR — annual percentage rate
Explore why aPR standardises the comparison.
In this lesson
APR — annual percentage rate is part of What Is Interest?. This preview shows how interest-growth connects to everyday family decisions such as earning, saving, spending choices, goals, approvals, or parent-guided money conversations inside Progress Penguin.
Think about this money choice
Imagine this situation: Loan A: 2% per month. Loan B: 20% APR.
How it works
APR standardises the comparison. A monthly rate, weekly rate, or 'flat fee' can all be converted to APR. Always compare APR to APR — it prevents being misled by rates quoted in other periods.
Apply it to a real decision
Real-life money moment: A fintech ad says: 'Borrow at just 1.5% monthly.
Activity preview
Connect the ideas
Use the lesson to complete this short practice activity.
Practice adding money to savings
Open Requests and make a deposit request into savings so you can see how saving starts. Parent approval can happen later.
Quiz preview
APR is:
Loan A: 2% per month. Loan B: 20% APR. Which is more expensive annually?