A typo

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Regards,

Peo Sjoblom

Excel 95 - Excel 2007
Northwest Excel Solutions
www.nwexcelsolutions.com
"It is a good thing to follow the first law of holes;
if you are in one stop digging." Lord Healey


wrote in message
oups.com...
Peo Sjoblom wrote:
Then the APR is 6.78%

Peo Sjoblom wrote later:
The formula would be
=RATE(30*12,-650.30,100000)*12

That RATE() formula does result in 6.78%. Bjut I am curious: where
does $650.30 come from? Just a typo?

The OP computed a payment of $665.30 based on the terms of the loan,
namely PMT(7%/12, 12*30, -100000), I presume. And I believe that is
the correct payment to use for the loan.

Some methods of computing the APR do involve computing a fictitious
payment based on a modified loan amount. But the one method I am
familiar with would compute $678.61.

If you are using some other method, could you elaborate for my
edification?