Question

What is the formula used for calculating the Annual Percentage Rate (APR)?

Answer 1

`APR =( (((Fees+interest)/(Principal))/(n)) * 365)*100\\`

Explanation:

Annual percentage Rate (APR) is the rate charged annually for borrowing money or money earned through investment.

The formula used to find APR is:

`APR =( (((Fees+interest)/(Principal))/(n)) * 365)*100\\`

Where Interest= Total amount paid over the life of loan

Principal = Amount of Loan Taken

n= No of days loan is to be returned.