The term PART OF APR refers to the components of an ANNUAL Percentage RATE (APR). The first component is ANNUAL, which is a six-letter word that refers to the yearly RATE of interest charged on a loan. The second component is PCT, which is a three-letter word that stands for percentage and is used to describe the RATE of interest charged on a loan. The third component is RATE, which is a four-letter word that refers to the amount of interest charged on a loan. Together, these three components make up the APR, which is the total cost of borrowing money over a year.