APR and Interest Rate

	Annual Percentage Rate	Interest Rate
Definition:	Annual Percentage Rate (APR) is an expression of the effective interest rate that the borrower will pay on a loan, taking into account one-time fees and standardizing the way the rate is expressed.	Interest is a fee on borrowed capital. Interest rate is a "rent on money" to compensate the lender for foregoing other useful investments that could have been made with the loaned money.
Transaction costs:	Transaction costs and fees are taken into account when calculating APR.	Typically, interest rates do not include transaction costs.