AllDeaf.com
Perks - Advertise - Spy - Who Quoted Me  
Go Back   AllDeaf.com > Miscellaneous > Personal Finances
LIKE AllDeaf on Facebook FOLLOW AllDeaf on Twitter
Reply
Thread Tools Display Modes
Unread 03-20-2009, 01:11 PM   #1
kyleb
Registered User
 
Join Date: Jan 2007
Location: Canada
Posts: 100
Likes: 0
Liked 0 Times in 0 Posts
How to calculate annual percentage rate

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:

Quote:
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.
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.

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.

Last edited by kyleb; 03-20-2009 at 07:20 PM.
kyleb is offline   Reply With Quote
Alt Today
All Deaf

Beitrag Sponsored Links

__________________
This advertising will not be shown in this way to registered members.
Register your free account today and become a member on AllDeaf.com
   
Unread 03-24-2009, 11:05 PM   #2
VamPyroX
bloody phreak from hell
 
VamPyroX's Avatar
 
Join Date: Feb 2003
Location: 40.18, 58.41
Posts: 34,363
Likes: 0
Liked 3 Times in 3 Posts
Send a message via ICQ to VamPyroX Send a message via AIM to VamPyroX Send a message via Yahoo to VamPyroX
I remember this from my business courses at RIT.
__________________
Check out my city... CLICK HERE!
(If you've already visited yesterday, visit again today!)
VamPyroX is offline   Reply With Quote
Unread 06-08-2010, 08:42 AM   #3
CaoYi
Registered User
 
Join Date: Jun 2010
Posts: 17
Likes: 0
Liked 0 Times in 0 Posts
Quote:
Originally Posted by kyleb View Post
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:

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.

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.
The answer is 16.66% = (($50 * 12 -$500) / ($50 * 12)) * 100% APR.
CaoYi is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -5. The time now is 08:31 AM.


Join AllDeaf on Facebook!    Follow us on Twitter!

AllDeaf proudly supports St. Jude Children's Research Hospital

Copyright © 2002-2014, AllDeaf.com. All Rights Reserved.