Calculating APR ? Any suggestions?

zacemmel

Well-known Member
Joined
Apr 29, 2002
Messages
636
I am trying to calculate the APR on a loan based on the fact that there are certain costs. I don't fully understand APR and I was wondering if there are any built-in functions to calculate the "costs" that are to be included with the LOAN?

Any financial wizards in the house?

IE, I have a loan of $100,000 and I have costs of $4,200 -

Any help would be greatly appreciated.

Thanks.
 

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zacemmel

Well-known Member
Joined
Apr 29, 2002
Messages
636
One more thing, the interest rate would be 6% and the payments would be monthly. Term would be 30 years.
 

Dave Patton

Well-known Member
Joined
Feb 15, 2002
Messages
5,495
Office Version
  1. 365
  2. 2010
Platform
  1. Windows
If costs are deducted at the beginning,
calculate the payments on the gross amount.

Then use the function RATE considering the calculated payment, net proceeds, and other factors.

See Help on Rate
 

tgrimes

New Member
Joined
Aug 20, 2002
Messages
13
A B C
1 Loan % Rate 6.00%
2 Loan Amount $100,000.00
3 Cost $4,200.00
4 Total Loan $104,200.00 =SUM(B2:B3)
5 Periods 360
6 Mo Payment ($624.73) =PMT(B1/12,B5,B4,0)
7 APR 6.39% =RATE(B5,B6,B2)*12
 

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