APY vs APR: What’s the Difference?

The cost of borrowing money can be confusing. There are so many different loan terms and conditions that it’s easy to get confused about what you’ll actually be paying. It’s not just the interest rate that determines how much a loan will end up costing you. You need to look at both the annual percentage rate (APR) and the annual percentage yield (APY) to know exactly what your costs will be. Both of these measurements reveal different things about a loan, so it’s important to understand how they impact your finances. Read on for details about the difference between APR…...