Solved

Work Out APR in Vb.

Posted on 2014-03-07
5
233 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:edjones1
  • 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:edjones1
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 500 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:edjones1
ID: 39916028
Perfect, Thankyou
0

Featured Post

Master Your Team's Linux and Cloud Stack

Come see why top tech companies like Mailchimp and Media Temple use Linux Academy to build their employee training programs.

Question has a verified solution.

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

Suggested Solutions

Title # Comments Views Activity
How to prevent website from publishing with errors 9 46
in Dot net,lastest version of MVC 3 24
cannot connect to sqlserver 8 27
.NET 2008 VB and C# 6 27
For those of you who don't follow the news, or just happen to live under rocks, Microsoft Research released a beta SDK (http://www.microsoft.com/en-us/download/details.aspx?id=27876) for the Xbox 360 Kinect. If you don't know what a Kinect is (http:…
The ECB site provides FX rates for major currencies since its inception in 1999 in the form of an XML feed. The files have the following format (reducted for brevity) (CODE) There are three files available HERE (http://www.ecb.europa.eu/stats/exch…
Established in 1997, Technology Architects has become one of the most reputable technology solutions companies in the country. TA have been providing businesses with cost effective state-of-the-art solutions and unparalleled service that is designed…
Email security requires an ever evolving service that stays up to date with counter-evolving threats. The Email Laundry perform Research and Development to ensure their email security service evolves faster than cyber criminals. We apply our Threat…

770 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