What is the formula to get the Interest percentage from Interest Rate?
Principal Amount : $1000 Interest Rate : $1 / Month Number of payments : 10
What is the formula to fetch the percentage ? (APR %)
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The monthly percentage rate is 0.1% ($1/$1000). The annualized percentage rate would then be that monthly rate compounded 12 times , or
(1 + 0.001 ^ 12) - 1 = 0.012 = 1.2%
More generally, the formula is
((1 + periodic_rate) ^ (periods_per_year) - 1)
Note that the fact that there are only 10 payments is irrelevant in calculating APR - only the periodic rate and the number of periods in a year matter.