I'm looking for some help with a finance homework. We've been given the FCA calculation for APR:
We've also been given a worked example, but the example doesn't provide an explanation on how to rearrange the equation to find the APR.
The worked example states:
Loan amount = 30,000.00
Initial admin fee = 250.00
Duration of loan repayments = 3 years (36 monthly instalments)
Interest charge = 12%
It then shows the above figures entered in, plus the calculated monthly payment figure of 1,333.33 and then "we solve for APR which is 24.13%".I have no idea how they calculated the APR with the above formula.
For context, I'm a mature student studying a business degree and due to covid we're studying remotely and my lecturer isn't the best. So I'd really appreciate it if someone could show me how the formula is rearranged?