APR - Annual Percentage Rate

[marlia]

What is the Excel formula for computing an APR on a mortgage? I have the
formulas for computing payments, etc., but have never found one for the APR.

Thanks!

 

[Peo Sjoblom]

Look at the RATE function,
assume we have a car loan and that we don't have top notch credit scores
60 months loan of 15000 with a monthly payment of 400 dollars, gives

=RATE(60,-400,15000)*12

format as percentage gives 20.31%



--
Regards,

Peo Sjoblom

(No private emails please, for everyone's
benefit keep the discussion in the newsgroup/forum)

 

[N Harkawat]

Given fixed rate mortgages APR and no closing fees
=(1+5%/12)^12-1