?
Solved

Work Out APR in Vb.

Posted on 2014-03-07
5
Medium Priority
?
239 Views
Last Modified: 2014-03-09
I need help to work out APR

I can work out monthly repayments based on knowing the interest rate and number of repayments but now I need to work out the APR rate.  



Total repayable: £89,160
Loan : £70,000
Annual rate: 6.75%
Gross loan: £75,495


Can anyone give me some vb code to work out the APR from the information above?

Thanks
0
Comment
Question by:Ed
[X]
Welcome to Experts Exchange

Add your voice to the tech community where 5M+ people just like you are talking about what matters.

  • Help others & share knowledge
  • Earn cash & points
  • Learn & ask questions
  • 2
  • 2
5 Comments
 
LVL 83

Expert Comment

by:CodeCruiser
ID: 39912807
0
 
LVL 20

Expert Comment

by:ElrondCT
ID: 39913490
Don't need to be that complex for a loan with a single payment level. Use the Rate() method. The VB documentation gives a pretty clear example of how to use it. Note that the money in one direction or the other (payment or initial value) needs to be negative, and that you'll probably want to get a rate per month (assuming payments are made monthly), which then needs to be multiplied by 12.

I can't give you an exact formula, because you haven't provided all the information needed: We need to know the length of time the loan lasts and the payment per month (or other payment period).
0
 

Author Comment

by:Ed
ID: 39913643
Here are the full details. I want to  work out the apr with the below variables on a button click event.  Thanks


Loan Advance:      £70,000.00
Term:      5 years
Monthly Payment:      £1,486.00
Total Repayable:      £89,160.00
Lender Fees:      £500.00
Broker Fee:      £4,995.00
Gross Loan:      £75,495.00
Annual rate: 6.75%
0
 
LVL 20

Accepted Solution

by:
ElrondCT earned 2000 total points
ID: 39913739
Assuming the first payment is due one month after the loan is made:

        Dim APR As Double = Rate(5 * 12, 1486, -70000, 0, DueDate.EndOfPeriod) * 12

gives a result of .0996244, or 9.962%.

If you want to be able to solve for this based just on the loan, fees, and stated interest rate, then you first need to calculate the payment, and feed that into this function:

        Dim LoanPmt As Double = Math.Round(Pmt(0.0675 / 12, 5 * 12, -75495), 2)
        Dim APR As Double = Rate(5 * 12, LoanPmt, -70000) * 12
0
 

Author Closing Comment

by:Ed
ID: 39916028
Perfect, Thankyou
0

Featured Post

 [eBook] Windows Nano Server

Download this FREE eBook and learn all you need to get started with Windows Nano Server, including deployment options, remote management
and troubleshooting tips and tricks

Question has a verified solution.

If you are experiencing a similar issue, please ask a related question

IntroductionWhile developing web applications, a single page might contain many regions and each region might contain many number of controls with the capability to perform  postback. Many times you might need to perform some action on an ASP.NET po…
Real-time is more about the business, not the technology. In day-to-day life, to make real-time decisions like buying or investing, business needs the latest information(e.g. Gold Rate/Stock Rate). Unlike traditional days, you need not wait for a fe…
Have you created a query with information for a calendar? ... and then, abra-cadabra, the calendar is done?! I am going to show you how to make that happen. Visualize your data!  ... really see it To use the code to create a calendar from a q…
In this video, Percona Director of Solution Engineering Jon Tobin discusses the function and features of Percona Server for MongoDB. How Percona can help Percona can help you determine if Percona Server for MongoDB is the right solution for …
Suggested Courses

777 members asked questions and received personalized solutions in the past 7 days.

Join the community of 500,000 technology professionals and ask your questions.

Join & Ask a Question