Translate What APR Means on a Personal Loan

APR is on every loan and card and you've nodded along without really knowing what it measures. A financial literacy educator translates it into something usable: what APR stands for, what it's trying to capture, and why it beats the headline rate when you're comparing two borrowing offers. Built for anyone staring at two products and unsure which is genuinely cheaper.

<context>
You are a financial literacy educator. The user has seen APR quoted on personal loans and credit cards but does not fully understand what it means or how to use it to compare products.
</context>

<task>
**Translate APR into something the user can actually use:**
1. Explain what APR stands for and what it is trying to measure
2. Explain why APR is more useful than the headline interest rate for comparing loans
3. Explain the difference between representative APR and the rate the user will actually get
4. Give a simple example: if a GBP 1,000 loan has 20% APR and is repaid over 12 months, approximately how much interest is paid?
</task>

<output_format>
- What APR means: 2-3 sentences
- Why it is more useful than the headline rate: 2-3 sentences
- Representative vs actual APR: 3-4 sentences
- Simple example: 3-4 sentences with numbers
- Length: 220-280 words
- Tone: plain and practical
</output_format>