How do you calculate the dollar cost of a loan When the loan is 14500 for 20 days with an annual rate of 12?
Dollar cost of loan = Amount borrowed x interest rate x (days loan is outstanding ? days in the year (360)) 14.500 * 12%*(20 / 360) = 96.67
1 person found this useful
\n. \n APR \n. \nAnnual percentage rate, commonly referred to as APR, is what creditors charge consumers in order to allow them to make installment payments on rather la…rge purchases, such as cars and homes. Loan types, credit score, report, and history, can all have effects on what APR you can get for a loan.\n. \n APR is NOT the interest rate! \n. \nThe annual percentage rate (APR) is an interest rate that is different from the note rate. It is commonly used to compare loan programs from different lenders. The Federal Truth in Lending law requires mortgage companies to disclose the APR when they advertise a rate. Typically the APR is found next to the note rate.\n. \nAPR does NOT affect your monthly payments. Your monthly payments are a function of the interest rate and the length of the loan.\n. \nAPR is a very confusing number! Even mortgage bankers and brokers admit it is confusing. The APR is designed to measure the "true cost of a loan." It is supposed to create a level playing field for lender by preventing them from advertising a low rate by hiding fees.\n. \nUnfortunately, different lenders calculate APRs differently! So a loan with a lower APR does not necessarily translate to a better rate. \n. \nThe following fees ARE generally included in the APR:\n. \n* Points - both discount points and origination points\n* Pre-paid interest. The interest paid from the date the loan closes to the end of the month. Most mortgage companies assume 15 days of interest in their calculations. However, companies may use any number between 1 and 30!\n* Loan-processing fee\n* Underwriting fee\n* Document-preparation fee\n* Private mortgage-insurance\n. \nThe following fees are SOMETIMES included in the APR:\n. \n* Loan-application fee\n* Credit life insurance (insurance that pays off the mortgage in the event of a borrowers death)\n. \nThe following fees are normally NOT included in the APR:\n. \n* Title or abstract fee\n* Escrow fee\n* Attorney fee\n* Notary fee\n* Document preparation (charged by the closing agent)\n* Home-inspection fees\n* Recording fee\n* Transfer taxes\n* Credit report\n* Appraisal fee\n. \nCalculating APR on adjustable and balloon loans is even more complex because future rates are unknown. The result is even more confusion about how lenders calculate APR.\n. \nDo not attempt to compare a 30-year loan with a 15-year loan using their respective APRs. A 15-year loan may have a lower interest rate, but could have a higher APR, since the loan fees are amortized over a shorter period of time.\n. \nFinally, many lenders do not even know what they include in their APR because they compute it using a software program. It is quite possible that the same lender with the same fees using two different software programs may arrive at two different APR values!\n. \nYup - clear as mud.
The annual percentage rate, or APR, does not measure the true cost of a loan, though does make up an important part of the true cost. The Effective Percentage Rate, or EPR,… measures the TRUE annual cost of a loan by incorporating the following elements into the calculation: * Annual percentage rate * Application fees * Origination fees * Points/cost reduction fees * Other lending closing costs Generally, very low APRs are presented by a number of lenders, however, the fees and/or points that must be paid at closing to obtain those fees may make the loan less attractive (especially for borrowers that don't have a lot of money to spend upfront).
The daily income of Ali that he was earning from his business is 1000000 Ten Lac rupees In 1996 to further expand his business he took a loan form Bank at 12 annual interest rate for 20 years?
That isn't a question =/.
how the annual percentage rate measures the true cost of a loan
Cassandra is repaying an installment loan of 3500 with 20 equal monthly payments of 196 each what is the annual percentage rate of the loan?
You have a single payment loan for 10500.00 for 123 days at 15 percent annual interest. Calculate interest due and the repayment amount .?
Interest =.15/365*123*10500 = $530.75 (approximate, depends on composite or accumulation terms) Total = $10,500.00 + 530.75 = $11,030.75 (approximate)
What a loan is What interest is And how the annual percentage rate measures the true cost of a loan?
What a loan is: A sum of money lent at interest. What interest is: A charge for a loan, usually a percentage of the amount loaned. And how the annual percentage rate measu…res the true cost of a loan? Annual percentage rate, commonly referred to as APR, is what creditors charge consumers in order to allow them to make installment payments on rather large purchases, such as http://wiki.answers.com/Q/What_does_the_term_annual_percentage_rate_mean_for_a_loan and homes. Loan types, credit score, report, and history, can all have effects on what APR you can get for a loan.
The average annual percentage rate or interest rate on home improvement loans is around 3.99% to 9.49%. Honestly it really depends on your credit profile.
Home loan rates are calculated based on the buyers financial history, fiscal responsibility, and past home buying experiences. Martial status and age may also be factored in.
Most websites have loan calculators on them. You can also check banking sites for loan calculators. There are so many available you should not pay to use one.
The annual rate is different for each type of loan that you could need. Rates start as low as 2.916% and peak at around 6.240% for equity and mortgage loans. For personal loan…s you can chose between a variable and fixed rate.
A secured loan is calculated using an asset as a hedge against possible default. They are generally safer loans than unsecured loans, such as money borrowed on credit cards, a…nd they usually carry lower interest rates. If someone defaults on their mortgage or car payment, then the bank can repossess the house or car to pay off the debt by selling it. The better credit score someone has, the lower the interest rate will be for a secured loan, be it a mortgage or an auto loan. Interest is calculated with an APR based on the principal amount of the loan.
There are many places which will allow you to calculate how much a loan will cost you. Most of the time, the loan provider will give you documentation with how much the actual… loan will cost you considering the loan's interest rate and the monthly payments you have chosen.
Calculating the interest rate on a loan isn't that difficult. A person will need to take the principal amount and multiply it by the term of the loan and the annual percentage… rate.
The car loan rate calculator is a tool appropriate to use when trying to buy a car. This tool is able to calculate your monthly payment if you put data such as the total amoun…t of your loan, the interest and the start date.