APR calculation

[Guest]

Re: APR calculation

The way I see you do this is to reverse calculate the monthly interest from the apr’s then apply them in monthly sequence to the reducing balance advance of whatever the assumption is.
When you have the new TCC from this calculation you can use it to calculate the effective APR.
Seem reasonable?

[Bill-K]

Re: APR calculation

That sounds like another way to do it. My method calculated and compounded on a daily basis, but going via the monthly rate should arrive at the same result.

[Guest]

Re: APR calculation

Hi just got arround to doing the calculation. Six months at an effective APR of 6% and six at 16%
I used the presumption of a £1500 loan over twelve months.

Total amount payable £1602.24 total effective APR 13.1%

Pretty close to Bills given the fact we used different methos and presumptions. Don't know where they get their figures from.

Peter

[charitynjw]

Re: APR calculation

Is this any use to you math boffins?

http://tcsoftware.net/products/apr/php/

PHP 98/7/EC Compliant APR Calculator


(It's free, if that helps!!)

[Bill-K]

Re: APR calculation

Cheers Chas - might have a play with that, later !!!