optiRum (version 0.33)

APR: Calculates the compound interest rate for a loan

Description

Based on period interest rate, number of periods, and loan amount, this function calculates the compound annual interest rate of the loan based on the monthly repayment. It calculates based on a fixed interest rate, FV=0, and charging is at the end of the period.

Usage

APR(nper, pmt, pv)

Arguments

nper

Number of periods - monthly

pmt

Instalment per period (should be negative)

pv

Present value i.e. loan advance (should be positive)

Value

• rate The effective interest rate per year

See Also

RATE

Other finance: PMT; PV; RATE

Examples

# single set of values
APR(12,-10,110)

# vector of values
df<-data.frame(nper=c(12,24),pmt=c(-10,-10),pv=c(110,220))
APR(df$nper,df$pmt,df$pv)