An annual percentage rate (APR from Truth in Lending and Truth in Saving acts) is the annual rate charged for borrowing. APR is expressed as a percentage that represents the actual yearly cost of funds adjusted for the net cash flows related to a loan (fees, compensating balances, points, etc.). This is an important distinction compared to effective interest rates in personal finance because: It causes finance companies to spend extra money. It makes loan and investment products cheaper for consumers. All of these. It allows consumers to make accurate comparisons between loan and investment products. In Personal Financial Planning, there are three financial statements commonly used. The three in their relative chronological order are: None of these Cash Flow (the past) - Net Worth (the present) - Budget (the future) Budget (the past) - Net Worth (the future) - Cash Flow (the present) Past Analysis (the past) - Now Analysis (the present) - Future Analysis (the future)