I need to figure out the APR. Can someone please assist me with a formula?
Currently I am selling a product for $810. I also give the option to purchase it over 36 months for $25.00/month. if they choose this option they will pay $900. I have to make sure due to usury laws that the imputed interest on this transaction is less than 8% APR. Can someone help me with a formula or function that will help me figure out the affective APR?
the difference between the cash price ($810) and the financed price ($900) is $90. This would be the imputed interst I assume.