# LF Help with APR formula

1. ## LF Help with APR formula

how do I calculate the APR on my loan if I have the following information:

1) date loan started
2) principal amount of loan advanced
3) accrued interest to date
4) compounded value of loan (principal plus interest)
5) The number of days outstanding
6) how do I determine the APR being charged  Register To Reply

2. ## Re: LF Help with APR formula

What about the future interest rate? Where is that?  Register To Reply

3. ## Re: LF Help with APR formula

thanks for your assistance, here's a picture of what I'm trying to solve for

http://prntscr.com/gk17dl

my formula is incorrect:

=((J3/I3)*365)/F3*100  Register To Reply

4. ## Re: LF Help with APR formula

Please don't upload pictures they are rarely much use and none of us want to recreate a workbook you already have. So upload your workbook.

You say your formula is incorrect which implies you know the required answer, so tell us what you expect.  Register To Reply

5. ## Re: LF Help with APR formula

I was told the interest rate is 2.30% compounded monthly. If this is correct, I would expect the annualized APR should be about 31.1% but I can't seem to get that number.  Register To Reply

6. ## Re: LF Help with APR formula

...the workbook???  Register To Reply

7. ## Re: LF Help with APR formula

Here is the workbook with my attempts to solve for the APR on the data tba (see P3)  Register To Reply

8. ## Re: LF Help with APR formula

Taking file 18391 as an example is the Accrued amount the chargeable interest for a complete year?
What about PPSA and Other charges? Shouldn't these feature in any APR calc?  Register To Reply

9. ## Re: LF Help with APR formula

you are correct, the PPSA and other charges should be added to get the true APR, however, in this instance I'm trying to create a simple formula that may be applied across all the loans.

The formula is used was: =RATE(F3,-J3,I3)

for file#18391 = 33.66% which looks reasonable however,
for file#18372 = 3.69% which does not look reasonable  Register To Reply

10. ## Re: LF Help with APR formula

I still don't understand the time element.
Does column J, i.e the Accrued amount represent the interest paid in a year?

i.e. with file 18391 is \$141.47 the total interest paid in a year on a loan of \$1750 which is then paid off by the end of the year?
If so and ignoring any monthly compounding effect then the interest rate is 8.08%

It's not yet clear to me exactly what you're trying to demonstrate or how, if at all, the number of days in the workbook are of any relevance.

Can you clarify please  Register To Reply

11. ## Re: LF Help with APR formula

I'm attempting to validate the interest rate charged on a file. We were provided with several data points however we can't seem to validate the formula.

For example:
File#1831
1) advance date: Sept 7-17
2) the initial amount of the loan was \$1750
3) accrued interest to Sept 11-17 = \$141.47
4) principal plus interest to Sept 11-17 = \$1891.47
5) we are told the interest rate charged is 2.3% per month compounded monthly
6) we are trying to solve for the rate inorder to determine what rate was charged to get \$141.47  Register To Reply

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