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# Questions tagged [apr]

Annual Percentage Rate

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1 answer
66 views

### Confusion with payment calculation for fixed payments on fixed interest loan

I'm trying to understand how to calculate the monthly payments on a fixed interest loan with a given term. I understand this can be done with the PMT excel function. Whenever I see this explained ...
• 13
11 votes
4 answers
3k views

### 0 APR Promotional Offer For Credit Cards

I’m currently learning about personal finance and I just found out that there are some credit cards that will give zero interest rate for a certain period of time (10-20 months). I know that to get a ...
• 115
12 votes
5 answers
7k views

### Should I pay off mortgage or invest in CD?

I am confused about the mortgage rates in APR vs CD rates that I could invest in [US]. I have a mortgage loan that I got with 2.875 APR. I could pay that off or invest that money in a CD with rate of ...
• 263
1 vote
1 answer
103 views

### If APY factors compounding (while APR doesn't), shouldn't APY always be higher than APR?

So, from what I understand: APR: rate advertised to borrowers (without compounding) APY: rate advertised to lenders (with compounding) So, for a loan with APR of 6%, that compounds monthly: APY = (...
16 votes
4 answers
8k views

### Why am I being declined for credit card offers?

I tried applying for a new credit card, as the only one I had strangely jumped from 2% to 35% APR unexpectedly, without any reason I could tell, and customer service was unhelpful. I plan to cut the ...
• 2,813
0 votes
1 answer
363 views

### How to calculate the APR on an investment?

I'm trying to boil this scenario down to an equation: A token is worth \$1.50. There is a total of 100 tokens invested. Last week, this investment earned \$2 in interest. Given this, how would I ...
• 103
3 votes
1 answer
145 views

### Are ongoing credit card charges added to the revolving balance and interest calculations immediately following a carried balance

Say I have a credit card, and I carry a balance of \$200 from my statement at the end of the month of June. Are all transactions from the month of July immediately added to the revolving balance and ...
• 33
7 votes
4 answers
3k views

### Can I get a late payment on my credit card if apr is 0% for the first 21 months?

Can I get a late payment on my credit card if APR is 0% for the first 21 months? (through a Chase Slate Edge intro offer) (I've always paid on time but I am in a situation where I might need to avail ...
• 693
1 vote
1 answer
97 views

### What do the various types of APR mean on my credit card?

I am looking at APR details and want to understand how it works. I see a credit card that says: Introductory APR - 0% for 15 billing cycles Standard APR - 14.74% - 24.74% variable Balance Transfer ...
1 vote
0 answers
113 views

### Understanding/Calculate effective annual rate and savings

I came across the following exercise: You put \$1000 into a savings account today that offers a 5% APR with semi-annual compounding. What is the effective annual rate of the saving account? How much ...
6 votes
2 answers
1k views

### Does increasing loan term increase APR?

I am taking out a personal loan to consolidate debts from various sources into one payment at a lower APR. The loan company lets me choose 24, 60, 72, etc. months to repay on the application. I can't ...
• 2,813
2 votes
1 answer
98 views

### What's the APR for this in combination with the Balloon Payment of 6525 USD?

I am trying to solve the following: Finance Amount: 24.951,82 USD Interest Rate: 2.29% Residual Value: 6.525 USD Number of Months: 60 Fee: 374.28 Years: 5 What's the APR for this in combination with ...
• 21
1 vote
2 answers
1k views

### Calculating Effective Annual Interest Rate & Annual Percentage Rate with fees (in R)

Problem How to calculate Effective Annual Interest Rate (EAR) and Annual Percentage Rate (APR) with fees (in R) ? I am interested in getting to know how much I am actually paying interest when fees ...
2 votes
2 answers
1k views

### Is it ever worth it to refinance an auto loan for a higher APR?

I recently moved into a new place/city and am looking to free up some room in my monthly budget. For the first time in about 3-5 years, I shopped for new car insurance and then looked into an auto ...
38 votes
8 answers
7k views

### Is 0% APR ever a bad idea?

I have recently purchased a few large items of furniture for my new home and paid a ~25% deposit on these. To pay off the remainder I can pay in full or pay monthly with a 0% APR payment plan. e.g I ...
• 1,668
0 votes
1 answer
166 views

### Refinance Calculator - use Interest Rate or APR?

I am using the NerdWallet Refinance Calculator to compare current loan with new loan. https://www.nerdwallet.com/mortgages/refinance-calculator/calculate-refinance-savings My question is should I put ...
• 117
1 vote
2 answers
601 views

### EU APR calculation, solving for APR

I'm looking for some help with a finance homework. We've been given the FCA calculation for APR: Source: https://www.handbook.fca.org.uk/publication/handbook/graphic/13449.png We've also been given a ...
• 11
1 vote
1 answer
2k views

### Formula for calculating the monthly payment for a Personal Contract Purchase

How can I calculate the monthly payment for a PCP (Personal Contract Purchase) when given the variables below? 'Amount to be financed' - finance amount APR (annual percentage rate - %) Length of ...
• 13
0 votes
1 answer
2k views

### What is the formula for calculating the months till pay off of a credit card that includes the APR?

I'm playing around in Excel attempting to get the total months to pay off a credit card. I'm not looking to pay off by a certain date. I just want to know how long it will take me to pay off what I ...
• 103
8 votes
2 answers
300 views

### 0% intro APRs complicating payoff plans

So I'm in not-the-best™ position with about 15K in undesirable credit card debt (And another 5K in permanent no-interest deferred payment plans). I'm trying to calculate what the optimal payoff ...
0 votes
0 answers
123 views

### Why does APR not include compounding?

As I understand it the Annual Percentage Rate (APR) formula does not take compounding into account. It is, in effect, a nominal rate. Why is this? I thought that APR was designed to allow consumers to ...
• 461
2 votes
4 answers
147 views

### What are some rule of thumb criteria to choose loans?

When one wants to take on a loan, they can do so from multiple banks. There are also comparison websites that allow you to see various loan offers from each bank. Most of them use the annual ...
• 123
26 votes
7 answers
8k views

### Debt management: 0% CC APR for 15 months vs 7% student loan debt

About me: I make about \$3330 a month from my job after taxes. I'm currently \$72,500 in debt from student loans, 7% APR. I have 0 other forms of debt (I live with my parents and bought a used car for ...
• 1,030
-4 votes
1 answer
145 views

### How does one calculate the following loan problems? [closed]

1.) Calculate the total interest to be paid on the loan during it's lifetime. Compute for BOTH compound interest and simple interest models. Start Principal = \$21,315.00, Date of Disbursement = 9/...
4 votes
2 answers
376 views

### Help on calculating credit card interest

Below is a summary of my current statement Apr 21 2019 - May 2019: The APR is 25.24% I had a promotional 0% APR till Apr 20. This is it google drive link I have tried my best to calculate the ...
• 41
0 votes
1 answer
78 views

### What is the formula to get the Interest percentage from Interest Rate?

What is the formula to get the Interest percentage from Interest Rate? Given : Principal Amount : \$1000 Interest Rate : \$1 / Month Number of payments : 10 What is the formula to fetch the ...
• 1,117
19 votes
2 answers
4k views

### What is Cash Advance APR?

I just got my first credit card. I haven't spent anything on it but I see that the Cash Advance APR is 27.5%. Can someone tell me in layman terms what this means?
• 693
2 votes
2 answers
198 views

### Balance transfer fee

I am getting my first credit card ever and I am trying to learn how it works. I got through most of the documentation but I am trying to understand this: 0% Intro APR for 15 months from account ...
• 693
1 vote
1 answer
137 views

### How to calculate APR on asset appreciation

When I search for APR calculators, I only find mortgage and credit repayment calculators. I am looking for the opposite. I want to calculate APR on asset appreciation. I bought something for \$15.k ...
• 405
24 votes
3 answers
5k views

### 20% APR means only 10% interest? (UK)

I am trying to get better grasp of what the APR figure means, so this example is purely hypothetical. I have entered a loan of £100,000 into an APR calculator on MoneySuperMarket with a 20% APR for ...
• 343
0 votes
1 answer
215 views

### How to compare the APRs of different currencies?

I want to take a loan and I have two options: Euros APR: 7.2% terms: 10 years Yuan APR: 9.2% terms: 5 years I have taken some financial classes so I have a vague idea about it. I know there is an ...
17 votes
8 answers
4k views

### Trying to lower my credit card APR; how to know what I should ask for?

I have a B of A Cash Rewards credit card that I want to have the APR lowered. It currently hovers at 20.49%. I've been a B of A customer since 2007, I've had the credit card since 2012. From their ...
• 319
0 votes
1 answer
1k views

### Algorithm to calculate the Interest on Loan with a Balloon Payment

I am trying to understand the algorithm used by My Calculators.com - Balloon Payment Calculator If I enter the following details: Loan amount: 4556.75 Number of months: 5 Interest rate: 5.75% ...
• 111
6 votes
2 answers
13k views

### How is interest calculated on PCP agreements?

in December 2018, I'll be at the end of my PCP agreement for my current car and I'm weighing up my options. I've never really paid attention to the details about my previous finance agreements - I ...
4 votes
4 answers
20k views

### What is the difference between APR, IRR, and effective rate?

I've been working on constructing an Excel spreadsheet that will calculate an APR (for loans in the US). In researching which built-in formula to use, I've seen websites refer to the "effective rate,"...
25 votes
7 answers
22k views

### Should I pay for a computer up-front or on finance?

This reads a bit like a home-work question, but this is actually my situation. The job I've taken is a BYOD (bring your own device), workplace and I prefer to use my own equipment. I've just started ...
0 votes
1 answer
91 views

### Are points and fees included in the monthly payment when looking for mortgages?

When searching for a mortgage, (for example, on bankrate.com) you are usually given a list, with each mortgage offer including (details made up): APR = 3.6% RATE = 3.5% Term = 15 Years \$/...
• 640
2 votes
1 answer
174 views

### Converting interest rates

I have found a monthly interest rate, 0.72% Now, I would like to convert this monthly rate to: Equivalent annual nominal rate of interest payable half yearly, and Equivalent annual nominal rate of ...
17 votes
5 answers
7k views

### Is it possible for me to keep my credit card APR at 0% permanently?

Right now I'm using the Chase Freedom card, and the terms say that it has a 0% Intro APR for 15 months from account opening on purchases. After the intro period, a variable APR of 15.74% - 24.49% is ...
• 535
0 votes
2 answers
823 views

### How to calculate APR for a fixed rate loan due before amortization end date?

I need help with the following question for a homework assignment related to finding the APR for an investment class. Here's the question: Calculate the APR for a \$500000 fixed rate loan amortized ...
1 vote
2 answers
167 views

### Interest or APR Query

I have really bad credit from when I was younger. The only credit card I can get is one 49.9% APR. If I spend £500 in a single transaction and pay back lets say £50 a month, what interest would I be ...
1 vote
1 answer
941 views

### Why does the present value of a deposit decrease when the APR increases? [closed]

When calculating a down payment in excel, I noticed that by increasing my rate from 3.7% to 6.25%, the money I supposedly have to pay today decreases. Why is that? Thanks a lot :)
2 votes
2 answers
293 views

### Car finance, APR rates and per week in adverts; help understanding them

Looking at a car advert [for a car I was considering buying in April 2008] but in the end I didn't - this was what the advert stated: 2005 TOYOTA COROLLA 1.4 VVTi 5 door hatchback £7195 From £38 ...
• 121
2 votes
3 answers
678 views

### 0 Percent Intro APR, is it a misnomer?

(Read the normal print for an amusing story, skip to the bolded text for more important info) To begin, I'm a scallywag. I saw that card offer in the mail and did some digging because I'm not used ...
• 31
32 votes
2 answers
25k views

### Why does my car loan interest go up despite making payments on-time?

In my first payment on 06-17-2016, the principal applied to my balance was \$186.76 and the interest was \$107.50. As I kept making the payment on-time, the second payment on 07-25-2016 was a bit of a ...
• 281
3 votes
4 answers
691 views

### Can you switch credit cards annually to avoid interest if you have no outstanding balance?

I am aware of how balance transfers work, and that there are various things to consider with that. However, I generally treat my credit card as a debit card, paying it off fully at the end of each ...
• 2,575
1 vote
2 answers
388 views

### 0% APR first 12 months on new credit card. Can I exceed that 30% rule of thumb and not hurt my credit score?

I opened a credit card account about two months ago, hoping to start building credit. Fortunately, I was approved for a regular credit card, not a secured one. I was informed by the person at the bank ...
• 149
1 vote
2 answers
936 views

### Calculate APR from balloon loan

I need formula to calculate nominal APR from balloon loan with contract fee. The initial data and payment schedule is: Loan sum: 10 000€ Interest rate per year: 15% Loan period: 2 years Payments ...
0 votes
1 answer
255 views

### Holding Multiple Credit Cards. Does the credit limits add up and work together? [duplicate]

So lets say I have the following credit cards with the following limits: \$1,500 \$8,500 \$9,000 If they all sat at 0 usage, and I was to charge one of them at say \$3000 and let that sit on 0% APR for ...
• 1,199
0 votes
2 answers
413 views

### Interest charges on balance transfer when purchases are involved

I just finished reading a great explanation on how interest is determined and how to avoid. It was stated the way to avoid interest is to pay off your full statement balance each month. Example: - ...