Annual Percentage Rate (APR)

What is APR?

The annual percentage rate (APR) is the interest amount a borrower must pay each year. Here is how to calculate the total amount based on APR - 

A= {P*(1+R*T)}

Where, 

A= Final amount

P= Principle or Loan amount

R= Interest Rate

T= Time in Years

Suppose, I want to invest 5 Ether with an APR of 24%. The time will be exactly one year. After one year, the total amount will be, {5*(1+0.24*1)} = 6.2 Ether.

Investors need to be aware of how volatile cryptocurrencies are. You may receive varying amounts of interest. Programs for lending cryptocurrency are interesting to investors who want to hold onto their coins for a long time. So their portfolio will gain value from passive income. However, any changes in the price of the cryptocurrency will affect their income.