APR - maths help
Discussion
I'm hoping someone can help me with calculating APR on finance agreements (insurance premium finance).
Usual form of deposit paid, a flat interest rate applied to the balance and spread over e.g. 6, 10 or 12 months - nothing out of the ordinary.
I've got the calculations sorted for a varying term, the flat interest, additional charges etc, but I don't know how to factor in a deposit (or if I even need to). Is the APR just calculated on the financed amount (given that is what the interest is charged on), or calculated on the whole lot and the deposit is just a payment that occurs in the 0th month?
The online tools I've found are mostly focused on loans so don't deal with deposits.
Usual form of deposit paid, a flat interest rate applied to the balance and spread over e.g. 6, 10 or 12 months - nothing out of the ordinary.
I've got the calculations sorted for a varying term, the flat interest, additional charges etc, but I don't know how to factor in a deposit (or if I even need to). Is the APR just calculated on the financed amount (given that is what the interest is charged on), or calculated on the whole lot and the deposit is just a payment that occurs in the 0th month?
The online tools I've found are mostly focused on loans so don't deal with deposits.
xRIEx said:
I'm hoping someone can help me with calculating APR on finance agreements (insurance premium finance).
Usual form of deposit paid, a flat interest rate applied to the balance and spread over e.g. 6, 10 or 12 months - nothing out of the ordinary.
I've got the calculations sorted for a varying term, the flat interest, additional charges etc, but I don't know how to factor in a deposit (or if I even need to). Is the APR just calculated on the financed amount (given that is what the interest is charged on), or calculated on the whole lot and the deposit is just a payment that occurs in the 0th month?
The online tools I've found are mostly focused on loans so don't deal with deposits.
Makes no difference.Usual form of deposit paid, a flat interest rate applied to the balance and spread over e.g. 6, 10 or 12 months - nothing out of the ordinary.
I've got the calculations sorted for a varying term, the flat interest, additional charges etc, but I don't know how to factor in a deposit (or if I even need to). Is the APR just calculated on the financed amount (given that is what the interest is charged on), or calculated on the whole lot and the deposit is just a payment that occurs in the 0th month?
The online tools I've found are mostly focused on loans so don't deal with deposits.
e.g. £15k outstanding with a deposit of £5k or £10k financed produces the same APR for the same payments.
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