[access-uk] Re: Calculating APR on a loan

  • From: "ANDY COLLINS" <Andy@xxxxxxxxxxxxxxxxxxx>
  • To: <access-uk@xxxxxxxxxxxxx>
  • Date: Sun, 29 Apr 2012 20:45:45 +0100

Hi Dave - just been looking and playing with the formula you sent below. I'm 
not sure this calculates a monthly APR rate of payment. It looks more like a 
flat rate of interest.

I'm not sure I've understood the first numbers in the brackets, that is, in the 
example, the .1/12. Is that the interest rate? For example, if the APR is 14 
percent, what do I do to reflect that in the formula?

Many thanks -

Andy
  ----- Original Message ----- 
  From: david pritchard 
  To: access-uk@xxxxxxxxxxxxx 
  Sent: Friday, April 27, 2012 10:11 AM
  Subject: [access-uk] Re: Calculating APR on a loan


  Hi andy,

  I've tried sending an Excel fragment with an example of the pmt function  
forgetting that the list does not allow attachments.! I'm pasting a section of 
the Excel reference manual giving the syntax and an example below. Hope this is 
of some use.

  cheers

  Dave
  Periodic Payment

  Syntax: =PMT(rate,nper,pv,fv,type) The PMT function calculates
  the periodic payment for different types and future values (fv)
  of investments given the investment's rate, term (nper), and
  present value (pv). If no values are entered for fv and type,
  they are considered to be zero.

  You Supply: rate as the interest rate per period; nper as the
  total number of periods; pv as the present value; (optional) fv
  as the future value; (optional) type as 0 if payment is at the
  end of the period, or 1 if payment is at the beginning of the
  period.

  Result is: the periodic payment for a loan, expressed in a
  dollar amount.

  Example: The following formula calculates the periodic payment
  for a loan totaling $120,000 over 30 years at 10 percent
  interest:

  =PMT(.1/12,360,120000)

  The result is ($1,053.09). The result is negative because it
  represents the amount you pay out.




  From: ANDY COLLINS 
  Sent: Wednesday, April 25, 2012 10:40 PM
  To: access-uk@xxxxxxxxxxxxx 
  Subject: [access-uk] Re: Calculating APR on a loan


  Yes please Dave, it'd be great to be able to just put the figure in and get 
the results from a formula -

  Andy
    ----- Original Message ----- 
    From: david pritchard 
    To: access-uk@xxxxxxxxxxxxx 
    Sent: Wednesday, April 25, 2012 9:29 PM
    Subject: [access-uk] Re: Calculating APR on a loan


    Hi Andy,

    You can use the PMT function in Excel. I can dig out an example if required.

    Regards

    Dave



    From: ANDY COLLINS 
    Sent: Wednesday, April 25, 2012 9:09 PM
    To: access-uk@xxxxxxxxxxxxx 
    Subject: [access-uk] Calculating APR on a loan


    Hi all -

    Hope I'm ok asking this here. I've been looking on some websites, and 
unfortunately their calculater tools for working out monthly repayments on a 
loan with an APR, require the sliding of a graphical bar across a grid. So, can 
anybody tell me how to work out monthly repayments using APR interest. Let's 
work with an easy example, if one borrows 10 thousand pounds, and the APR is 6 
percent, how does one work out the monthly repayments over say 1 and 2 and 3 
years? I can work out 6 percent of 10 grand, but it doesn't work that way, so 
anybody help with this one?

    Thanks -

    Andy

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