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Laptop or computer Assistance : How to Use Excel to Calculate APR





There are two features to use when calculating APR in Microsoft Excel. Use “PMT” and “Fee” features in Excel to determine APR, or what is currently being compensated on a financial loan, with IT assistance from a software developer in this free of charge online video on utilizing computers.

Qualified: Dave Andrews
Contact: www.daveandrews.org
Bio: Dave Andrews is a software developer that holds a degree in pc science. Now, he is used by a government IT division.
Filmmaker: Tim Brown

7 comments

  1. Since he didn't include any closing costs in the APR computation, the APR must therefore be exactly the same as the interest rate: 6.5% lol

    The accuracy of the RATE computation is limited to the 6 significant digits in the payment. Therefore, the 0.0000003 is garbage and should be ignored.

    The 0.0000003 has absolutely nothing to do with "bringing it up to the yearly APR as opposed to the monthly rate." "APR" stands for "Annual Percentage Rate."

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  2. That's now how you get APR, he's just going into a circle, the extra 0003 number at the end is because he types $1,264.14 without the hidden extra decimals. Since he adds no extra cost to the loan he will always get the APR to be equal to the interest rate.

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  3. NPER does not stand for the amount of payments.  It is the NUMBER OF PERIODS.

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  4. super expanation! thanks

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  5. Great job Dave! I'm in a Personal Finance class in college and I hate doing this by hand! Kudos man~ Jeremy Snowden

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  6. @Xfrozenfire34 To restore vanished Address bar (field wherein you type URL / webpage addresses, in your screen's top toolbar): 1. Press Undo? 2. Right-click the top toolbar, Click Customize, then Add or Remove Commands, the click Reset button. 3. Click Help button, search topic Address Bar — how to add or restore. You can add an Address Bar to your Desktop, so should be able again to add it to the bar above your browser screen's menu bar. Good luck!

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  7. I don't think this is how to calculate an APR. All you've done is used the add-on interest rate, divided it by 12 and times it by 12 again so that you get the same number as you started with. That's not how APR works at all.

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