The UK APR formula explained

Theomach

Is there anyone out there with the skill and patience to write out the UK APR formula and explain it for a five year old? I say this because I'm reasonably intellegent but I just don't understand it largely because no-one has bothered to expaain all the terms. For example I see the term (1+R/100). I fully understand you must solve the equation inside the brackets. I understand this means 'divide r by 100 then add it to one. However, I don't understand if R is the APR or the effective percentage rate (annual percentage rate) etc. It also doesn't tell me if R is a percentage figure or a decimal figure. I assume it's a percentage being re-converted to decimal?

So if you've got the patience and skill please God reply with the full story, the big picture, the grand unification theory of APR =........ and lets assume no fees or charges just sum borrowed and interest.

It also shocks me it's a UK requirement to express all loans in terms of APR and apparently no-one understands how to calculate them, me included.

Thank you so very much.
Frustrated,
From Hell

DCFC79

Have a read of the links in the thread "APR on Flexible loan"