calculating APR using math

Mathematics
Tutor: None Selected Time limit: 1 Day

Jun 19th, 2015

Thank you for the opportunity to help you with your question!

assume that you borrowed $100,000 and the lender tells you you've 7% interest rate. you also have $1000 in closing costs. the APR on a 30 year fixed rate mortgage would be 7.10%

find the monthly payment for loan and closing costs=pmt(0.07/12,360.100000)


the format is : pmt (rate, nper,pv,fvtype)

.07 divided by is the rate (you're using a monthly ratye to find monthly payments

.360 is the number of periods

100000 is the presemt value of the loan 

you should have resulted of $665.30

next solve for the APR

RATE(360,-665.30,99000







Please let me know if you need any clarification. I'm always happy to answer your questions.
Jun 19th, 2015

That was an example if you follow it well you will get the whole thing,

Jun 19th, 2015

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