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Can you work out this APR?

the_commander
the_commander Posts: 77 Forumite
in Savings & investments
Hi guys, can you please help me work out an APR? I am wondering what 90% over 6 years works out as APR?

Thanks for any help.

Cheers

Comments

  • oldwiring
    oldwiring Posts: 2,452 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    How frequent are the payments and how often is interest added to the loan?

    I think those may well be essential.
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    I think the op means if he earns 90% over 6 years, what is the equivalent in AER.
  • Apreciar
    Apreciar Posts: 627 Forumite
    £100 becoming £190 after six years would need a rate of 11.29%
    Change is here to stay
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    Apreciar wrote: »
    £100 becoming £190 after six years would need a rate of 11.29%

    How did you work that out? :)
  • Apreciar
    Apreciar Posts: 627 Forumite
    Lokolo wrote: »
    How did you work that out? :)

    Financial Calculator 6 year term, initial cap £100, future value £190 calculate %

    Double checked with the rate in Excel it's correct.
    Change is here to stay
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    Apreciar wrote: »
    Financial Calculator 6 year term, initial cap £100, future value £190 calculate %

    Double checked with the rate in Excel it's correct.

    Forumlaaaaa I need formulaaaaaaa :eek: ;)
  • the_commander
    the_commander Posts: 77 Forumite
    excellent thanks guys. It was for a capped capital investment fund. I wanted to see what their 90% cap worked out as and if the fund is worth it. It all of a sudden does not seem so fantastic.

    Cheers
  • lpgm
    lpgm Posts: 359 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    100 * ( (190 / 100) ^ (1 / 6) - 1) = 11.29%
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    lpgm wrote: »
    100 * ( (190 / 100) ^ (1 / 6) - 1) = 11.29%

    Thanks!!!!!
  • Apreciar
    Apreciar Posts: 627 Forumite
    Lokolo wrote: »
    Forumlaaaaa I need formulaaaaaaa :eek: ;)

    1.1129 to the power of six 1.899926737

    close enough for me

    future value over present value less 1 to the power of the term divided by term reciprocal of this number

    Sorry I dont know how to enter maths symbols here
    Change is here to stay
This discussion has been closed.
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