AOR to APR - Truth in Lending
Toan,
I think it is:
=RATE(36,(5790 +746)/36,-5790)*12
When used in the PMT function:
=PMT((RATE(36,(5790 +746)/36,-5790)*12)/12,36,-5790)
it gives the same payment amount as
=(5790 +746)/36
HTH,
Bernie
MS Excel MVP
"Toan" wrote in message
...
Hi!
Can someone please help me with this question regarding calculating the APR
that you see in the Federal Truth-In-Lending Disclosures when you sign a
contract for a car loan?
If I have these values, what is the fast way to get to the APR
1) Add on Rate (12%)
2) Term (36 months)
3) Loan start date and loan end date (Feb 1 2005 to Aug 5 2007)
4) Amount financed ($5790)
5) Finance charge ($746)
If I'm missing any information you need to help me with this please tell me.
I'm assuming it's the RATE function but I can't get it to work correctly.
Please help because my job depends on it :-)
A thousand thanks in advance!
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