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apr_annual_percentage_rate_.htm
Navigation:  Templates > Guide to all Templates > Additional Libraries and Templates > Finance Library >====== APR (annual percentage rate) ====== Previous pageReturn to chapter overviewNext page

APR(rate,periods)

APR Returns the effective annual interest rate.
rate A numeric constant or variable containing the contracted interest rate.
periods A numeric constant or variable containing the number of compounding periods per year.

The APR function determines the effective annual rate of interest based upon the contracted interest rate (rate) and the number of compounding periods (periods) per year. For example, periods = 2 results in semi-annual compounding. The contracted interest rate is a “non-compounded annual interest rate.”

Return DataType:     DECIMAL

Internal Formulas:

APR.jpg

Example:

PeriodicRate = AnnualInterestRate / (PeriodsPerYear * 100) ! Setup Variables

RealRate = InterestRate / 100

AnnualRate = APR(RealRate,PeriodsPerYear) ! Call APR

AnnualRate *= 100                         ! Normalize Results

apr_annual_percentage_rate_.htm.txt · Last modified: 2021/04/15 15:56 (external edit)