=(Y/X)^2-1 to get the effective annual interest rate (what you are actually
paying yearly taking into account compounding of interest)
=(Y/X-1)*2 to get the APR
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Regards,
Dave
"jw" wrote:
Excel 2003.
This is fairly basic.
Say you borrow X amount of dollars with an obligation to pay back Y
amount of dollars (Y X; lump sum) 6 months from the date of the loan.
Which Excel function is appropriate to determine the interest rate on
an annualized basis?
Thanks very much.
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