# Annual Percentage Rate (APR) ```Annual percentage rate (APR)
Teacher guidance
This introduces APR, the interest charge that is involved when we borrow money, and how
to calculate it for both a whole number and a fractional number of year length terms. It also
suggests reasons why people want to borrow money.
Mathematical strand: Finance, Algebra
Prior knowledge
Previous knowledge of calculating percentages and calculations involving roots (using the
indices button and its inverse on a calculator) would be useful.
Relevance to Core Maths qualifications
AQA
C&amp;G

Eduqas
Pearson/
Edexcel
OCR



Suggested approaches
The task could be used with an investigative approach, where students are given loan
amounts, total amount repaid, APR and length of loan – in order to come up with a formula
to connect them. Students can then use the formula to calculate the APR in different
situations within the worksheet.
Resources/documentation
In addition to this overview, there are:

Detailed teacher notes (Word and PDF)

Student worksheet (Word and PDF)

PowerPoint presentation
Relevant digital technologies