HP 10bII - Annual Percentage Rate for a Loan with Fees

8: Additional Examples 101
Step 3. (QWHUDFWXDOFXUUHQWYDOXHVIRU1DQG39WKHQILQGWKHQHZ
,<5IRUWKHGLVFRXQWHGPRUWJDJHZLWKEDOORRQ
Annual Percentage Rate for a Loan With Fees
7KHDQQXDOSHUFHQWDJHUDWH$35LQFRUSRUDWHVIHHVXVXDOO\FKDUJHGZKHQ
DPRUWJDJHLVLVVXHGZKLFKHIIHFWLYHO\UDLVHVWKHLQWHUHVWUDWH7KHDFWXDO
DPRXQWUHFHLYHGE\WKHERUURZHUWKH39LVUHGXFHGZKLOHWKHSHULRGLF
SD\PHQWVUHPDLQWKHVDPH7KH$35FDQEHFDOFXODWHGJLYHQWKHWHUPRI
WKHPRUWJDJH1SHULRGVWKHDQQXDOLQWHUHVWUDWH, 35WKHPRUWJDJH
DPRXQWQHZ39DQGWKHDPRXQWRIWKHIHH
5HPHPEHUWKHFDVKIORZVLJQFRQYHQWLRQPRQH\SDLGRXWLVQHJDWLYH
PRQH\UHFHLYHGLVSRVLWLYH
Example: APR for a Loan With Fees. $ERUURZHULVFKDUJHGWZR
SRLQWVIRUWKHLVVXDQFHRIDPRUWJDJH2QHSRLQWLVHTXDOWRRIWKH
PRUWJDJHDPRXQW,IWKHPRUWJDJHDPRXQWLVIRU\HDUVDQG
WKHDQQXDOLQWHUHVWUDWHLVZLWKPRQWKO\SD\PHQWVZKDW$35LVWKH
ERUURZHUSD\LQJ"
6HWWR(QG0RGH3UHVV
*O LIBEGINDQQXQFLDWRULVGLVSOD\HG
Keys: Display: Description:
PP
18.00
6WRUHVUHPDLQLQJ
QXPEHURISD\PHQWV
(
–79,000.00
6WRUHVSULFHRI
PRUWJDJH
.
20.72
&DOFXODWHVWKHUHWXUQ
RQWKLVGLVFRXQWHG
PRUWJDJH
Keys: Display: Description:
*b
12.00
6HWVSD\PHQWVSHU\HDU
.
8.50
6WRUHVLQWHUHVWUDWH
*U
360.00
6WRUHVOHQJWKRI
PRUWJDJH

160,000.00
6WRUHVRULJLQDODPRXQW
RIPRUWJDJH
10B.book Page 101 Wednesday, June 21, 2000 5:19 PM