How to find APR?

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A homework question is:

Suppose you borrowed 100,000 two years ago to buy a house. You received a fifteen year mortgage with a monthly interest rate of .0057.

What is the APR?

If you can tell me the formula for finding APR, that would be awesome, thanks.

2006-10-09 04:12:43 · 1 answers · asked by Anonymous in Education & Reference ➔ Higher Education (University +)

1 answers

APR = (1+r)^N - 1

where r = periodic rate,
and N = periods per year,

Your APR will be equal to (1.0057)^12-1 = 7.059% per year.

2006-10-09 04:18:09 · answer #1 · answered by Ranto 7 · 0⤊ 0⤋