To calculate the APR:
\[ APR = r \times n \]
APR, or Annual Percentage Rate, is the annual rate charged for borrowing or earned through an investment. It is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the transaction but does not take compounding into account. APR is a useful measure for comparing different loan and investment options, as it provides a standardized way to understand the cost or return on an annual basis.
Let's assume the following values:
Step 1: Multiply the monthly interest rate by the number of months:
\[ APR = 1.5 \times 12 = 18 \% \]