Hi Safu,

As N Harkawat has explained in his reply, you calculation of total repayment
is wrong in the first place. And this leads you to the value of 13.121%
(which ofcourse is wrong). The total repayment is not 168.75 but it is
140.10 which you can get by using the formula:
= PMT(Interest/12,Term,-Loan)
= PMT((7.75%)/12, 96, -10000)
= 140.10

And now if you use the Rate function you will definitely get back your
original rate:
= RATE(Term,-Total Repyt,Loan)*12
= RATE(96,-140.10,10000)*12
= 7.75%

As N Harkawat has explained, your interest eeps on reducing as the term
starts reducing and the principle amount repaid increases. Your total
repayment remains same at 140.10.


Regards
Mangesh



"Safu" wrote in message
...
Hi Mangesh Yadav,

Loan = 10,000.00
Term = 96 months
Interest = 7.75%

Loan / Term = 104.17
Loan x Interest / 12 = 64.58
Total Repyt = 168.75

APR come from a formula of
=RATE(Term,-Total Repyt,Loan)*12
=RATE(96,-168.75,10000)*12
=13.1210%

So from the above formula which given the answer of the APR, then how do I
can get back the actual rate of 7.75% by using the APR which is 13.1210%?
This is what I'm trying to figure out.

Thanks Mangesh, I believe you can make it.

"Mangesh Yadav" wrote:

Hi Safu,

The figure 168.75 is a result of the formula
=PMT(13.12%/12, 96, -10000)

Infact I had asked you for the EMI as I wanted to know from where you
are
getting at the rate of 7.75%

As Ron pointed out, can you tell us from where you got the 7.75% figure.

- Mangesh


"Safu" wrote in message
...
OK, EMI is 168.75

"Mangesh Yadav" wrote:

Sorry, its the Equal Monthly Installment.
or the equaly monthly repayment towards the loan

Mangesh



"Safu" wrote in message
...
What is EMI stand for?

"Mangesh Yadav" wrote:

what is the EMI you are paying...?

- Mangesh



"Safu" wrote in message
...
Please if anybody can help me how to calculate back the APR
rate
to
Actual
Interest Rate.
Loan = 10K @ 96 mth = 13.1210%
So 13.1210% = 7.75% (Actual Interest Rate)

Any formula that can help me?