What's the difference between interest rate and Annual Percent Rate (APR) for a loan?

I don't understand the term: The Annual Percentage Rate is calculated on the interest reate, fees and number of years in repayment.

Does this mean that The Annual Percentage Rate is the true rate of paying interest on a loan? and interest rate is only mean the constant Prime Rate?

Thanks for the help.

[此贴子已经被作者于2006-4-19 18:46:37编辑过]