Interest Calculation
sammyd22
Registered Posts: 207 Dedicated contributor ๐ฆ
Does anybody know the formula for calculating apr into a montly rate?
Cant seem to find this in any of my books.
Cheers.
For example: APR of 18% broken into a monthly rate?
Cant seem to find this in any of my books.
Cheers.
For example: APR of 18% broken into a monthly rate?
0
Comments
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divide it by 120
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lol. I wish.
Maybe i didnt explain it too well.
Its calculating the annual to compund monthly rate.
I have an annual rate of 18%
Monthly compound rate = 1.3888 (Not quite sure how i get to this anser though)?
Any idea on the calculation?0 -
Hello,
To calculate monthly:
12th root of 1.18 = 1.013888
1.013888 - 1 = 0.013888
= 1.3888 %0 -
Great stuff.0
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Hi,
This is probably obvious but you can check the calcultation the other way around eg.
1.01388^12 - 1 = 18 %0 -
Please could any of the respondents who understand this stuff have a look at my similar query here?
http://forums.aat.org.uk/showthread.php?t=30548
Thank you!0 -
thanks all0
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