Per cent just means per hundred. So for money 1 is 1p in the pound. 50 is 50p in the pound. A loan at 10 interest per year charges 10p for every pound borrowed every year BBC Skillswise: About percentages. A simple way of thinking of APR is how many pence it would cost you to borrow each pound, per year. So for instance at 40 APR, on each pound borrowed you would pay 40p a year.
At 400 APR, on each pound borrowed you would pay 400p or ВЈ4 a year. At 4000 APR, you would pay 4000p a year, that's ВЈ40 on each pound borrowed. Percentages are out of a 100 aren't they.
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