What is per annum?

Per annum is a Latin term that means "per year" or "annually." It is commonly used in financial and business contexts to describe the rate at which something occurs or is calculated on an annual basis. For example, interest on a loan may be expressed as a percentage per annum, or a salary may be stated as a certain amount per annum. This term is often abbreviated as "p.a." or "p.a.," and it is widely used in contracts, financial statements, and other formal documents to specify annual figures or rates.