How do you figure APR?

Question

Could someone please give me an example, preferably using this equation.... If the amount needed is $137500, there are $12,500 in fees for a total loan amount of $150,000 what would the APR be if the interest rate is 5.25% on a 30 year fixed loan?

Answer 1

Try this link:

http://www.efunda.com/formulae/finance/apr_calculator.cfm

If that does not help you, try this one:

http://en.wikipedia.org/wiki/Annual_percentage_rate

Answer 2

APR means Annual Percentage Rate - it is the cost of lending the money. In your case, it should be 5.25%

Answer 3

assuming monthly payments, you compute
(1 + 0.0525/12)^12 = 1.053781887, so the APR is 5.38%