Hi, I am a software developer creating a loan repayments calculator. With this calculator the known values are the initial cost, a balloon payment at the end and the APR; using these I have been able to write a script which calculates the monthly repayment.
For legal reasons I need to be able to show the fixed rate of interest for this period, however I can't figure out how to find that. Using a standard calculation for this doesn't work sadly.
This is the example I have been provided with:
Loan Value: £12000
APR: 7.9%
24 Monthly Payments Of: £194.58
1 Final Payment: £9000
Duration of agreement: 24months + 1
Interest Rate: 4.07%
Total Amount Payable: £16,669.92
If anyone is able to ascertain how the interest rate of 4.07% is calculated then I would really appreciate it
Thanks
For legal reasons I need to be able to show the fixed rate of interest for this period, however I can't figure out how to find that. Using a standard calculation for this doesn't work sadly.
This is the example I have been provided with:
Loan Value: £12000
APR: 7.9%
24 Monthly Payments Of: £194.58
1 Final Payment: £9000
Duration of agreement: 24months + 1
Interest Rate: 4.07%
Total Amount Payable: £16,669.92
If anyone is able to ascertain how the interest rate of 4.07% is calculated then I would really appreciate it
Thanks