Help Me Calculate APR

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
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Topic Author
jubby288
Posts: 36
Joined: Mon Jan 13, 2020 4:46 pm
Location: Cleveland, OH

Help Me Calculate APR

Post by jubby288 » Thu Jan 16, 2020 10:30 am

I could use Bogleheads expertise on a math problem

Scenario
Business is charged 633.33 per month
Zero payments have been made for 156 consecutive months
Ending balance, i.e., principal + fees & interest is $243,980

What is the annual percentage rate?

Silk McCue
Posts: 3864
Joined: Thu Feb 25, 2016 7:11 pm

Re: Help Me Calculate APR

Post by Silk McCue » Thu Jan 16, 2020 11:11 am

Approximately 12.3% is what I come up with. The fees are unknowable so that is ignored.

Cheers

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Oicuryy
Posts: 1351
Joined: Thu Feb 22, 2007 10:29 pm

Re: Help Me Calculate APR

Post by Oicuryy » Thu Jan 16, 2020 11:37 am

Roughly 12.30%=12*RATE(156,-633.33,0,243980,1)

The official rules for APR calculation are in Appendix J of Regulation Z.
https://www.consumerfinance.gov/policy- ... ns/1026/J/

Ron
Money is fungible | Abbreviations and Acronyms

Topic Author
jubby288
Posts: 36
Joined: Mon Jan 13, 2020 4:46 pm
Location: Cleveland, OH

Re: Help Me Calculate APR

Post by jubby288 » Thu Jan 16, 2020 11:40 am

Thanks guys :D

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