Example: $2,500 at stated rate of 6%, five equal quarterly principal payments PLUS $25 Fee Five...

 

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Example: $2,500 at stated rate of 6%, five equal quarterly principal payments PLUS $25 Fee Five payments: $500 every 3 months. Please note the 6% is an annual rate and there are five quarterly payments. 1.) Calculate total interest paid for loan: First Qtr Second QTR Third Qtr Fourth Qtr Fifth Qtr Total Interest Paid 2.) Calculate APR Amount Outstanding Beginning Principal Paid at End Interest Paid Paid at end APR Formula : r=(2 x nx 1)/(P(N+1)) n = Number of payments in a year P = Principal |N= Number of payments in TOTAL Total Interest Paid Fee I = Total Interest & fees paid over life of loan APR Example: $2,500 at stated rate of 6%, five equal quarterly principal payments PLUS $25 Fee Five payments: $500 every 3 months. Please note the 6% is an annual rate and there are five quarterly payments. 1.) Calculate total interest paid for loan: First Qtr Second QTR Third Qtr Fourth Qtr Fifth Qtr Total Interest Paid 2.) Calculate APR Amount Outstanding Beginning Principal Paid at End Interest Paid Paid at end APR Formula : r=(2 x nx 1)/(P(N+1)) n = Number of payments in a year P = Principal |N= Number of payments in TOTAL Total Interest Paid Fee I = Total Interest & fees paid over life of loan APR