Hi all.
This post will teach you how to calculate the annual percentage rate. I will use an example to assist us.
Say you have these loan terms:
Amount borrowed: $500
Length (in years): 1
Monthly payment: $50
Number of payments: 12
Total interest: $100 (($50 * 12) - $500)
Total loan cost: $600 ($50 * 12)
To calculate the APR, divide the total interest by the total loan cost and multiply by 100. In this example, the answer is 16.66% APR.
Generally, an stated APR means that you are paying that much cents each dollar borrowed or that much dollars each 100 dollars borrowed.
This post will teach you how to calculate the annual percentage rate. I will use an example to assist us.
Say you have these loan terms:
So let's say we borrow $500 for 1 year. Assuming that we pay it all off then, here is what the loan looks like.Will lend you between $500 and $1,500. Fee is $50 ($500) or $60 ($1,500) each month. Amounts in between will have a prorated fee.
Amount borrowed: $500
Length (in years): 1
Monthly payment: $50
Number of payments: 12
Total interest: $100 (($50 * 12) - $500)
Total loan cost: $600 ($50 * 12)
To calculate the APR, divide the total interest by the total loan cost and multiply by 100. In this example, the answer is 16.66% APR.
Generally, an stated APR means that you are paying that much cents each dollar borrowed or that much dollars each 100 dollars borrowed.
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