Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1   Report Post  
Safu
 
Posts: n/a
Default APR - Annual Percentage Rate to Actual Interest Rate

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?
  #2   Report Post  
Mangesh Yadav
 
Posts: n/a
Default

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?



  #3   Report Post  
Safu
 
Posts: n/a
Default

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?




  #4   Report Post  
Mangesh Yadav
 
Posts: n/a
Default

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?






  #5   Report Post  
Safu
 
Posts: n/a
Default

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?








  #6   Report Post  
Ron Rosenfeld
 
Posts: n/a
Default

On Thu, 12 May 2005 08:14:01 -0700, "Safu"
wrote:

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?


I don't understand how you develop an actual interest rate of 7.75%, given your
values (and your monthly payment from another thread).

How are you defining "ACTUAL interest rate"?


--ron
  #7   Report Post  
Mangesh Yadav
 
Posts: n/a
Default

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?








  #8   Report Post  
Safu
 
Posts: n/a
Default

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?









  #9   Report Post  
N Harkawat
 
Posts: n/a
Default

The loan is not a typical loan where the interest calculated is based on the
original loan and not the written down book value

For instance in the first month after paying off 168.75 the balance of loan
=10000 - 104.17 (loan repaid) = 9,895.83

The interest for 2nd month = 9,895.83 * 7.75% * 1/12 = $63.91 whereas the
interest paid is still $64.58

When you are using the rate function to come to 13.121% excel is expecting
that your equal monthly payment is composed of principal plus the lower
interest and it keeps going down with each instalement
paid till month 96 when your payment of 168.75 comprising of Principal of
$166.92 and interest of $1.83

I do not see any function to get to your rate of 7.75% although the true
rate that you paid is 13.121% and the APR is
=13.94%
using the function
=effect(13.121%,12)





"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?











  #10   Report Post  
Mangesh
 
Posts: n/a
Default

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?











Reply
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules

Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
How do I caluclate an Annual Percentage Rate in Excel? Lisa M Excel Worksheet Functions 32 April 22nd 23 04:11 AM
Effective Annual Interest Rate John Excel Worksheet Functions 4 April 4th 23 12:45 PM
Annual Percentage Rate for Mortgage Tristan Excel Discussion (Misc queries) 3 February 5th 05 04:37 PM
Annual Percentage Rate sts111 Excel Discussion (Misc queries) 1 February 1st 05 01:26 PM
APR - Annual Percentage Rate marlia Excel Worksheet Functions 2 December 9th 04 09:05 PM


All times are GMT +1. The time now is 08:47 AM.

Powered by vBulletin® Copyright ©2000 - 2023, Jelsoft Enterprises Ltd.
Copyright 2004-2023 ExcelBanter.
The comments are property of their posters.
 

About Us

"It's about Microsoft Excel"