How to APR

[Guest]

I am trying to figure out how to calculate annual percentage rate. The only
values I have are the amount financed, term of loan (in months), and the
"nominal" intrest rate.

The issue is the state law says cannot charge over 36% year but rates are
going to 70%. My guess this is due to the small amount of loans and the time.

Any ideas would be appreciaed.

 

[Bernard Liengme]

Why not share some numbers with us?

 

[Paul Corrado]

The "nominal rate," is the APR

If you are looking for the EAR (effective annual rate) use

((1+APR/n)^(n))-1

to convert the APR to an EAR where n = the number of compounding periods (12
if monthly, 4 if quarterly...)

 

[Fred Smith]

Or, use the Rate function