How is the Annual Percentage Rate (APR) commonly expressed?

The Annual Percentage Rate (APR) is commonly expressed as a percentage of the transaction value. This measurement provides borrowers and consumers with a standardized way to understand the cost of credit on an annual basis, encapsulating not only the interest rate but also other related fees and costs incurred during the borrowing period.

By expressing the APR as a percentage, it allows for easier comparison between different financial products or loans, regardless of how they are structured or the specific terms involved. This helps consumers make informed decisions about borrowing, as they can see the total annual cost they would incur rather than just focusing on the interest alone or hard-to-interpret fees in various formats.

While other options might represent different aspects of financial transactions, they do not capture the comprehensive nature of the APR or its intent to reflect annualized borrowing costs in a singular percentage format.