calculate APR loan repayment using pl/sql or java or ....?

[css_jay99]

Not sure where this leaves me, But more detail.

I am building a Payment module (pricing/payment & authorisation....., payment collection)

I already have the APR amount hence dont need to work it out at all.

My client sells a servicet(e.g. car for £5000). You have the option of paying in full or pay a deposit amount (i.e 10% = £500) and the remainder (£4500) over x months installments (e.g. 11months) with APR of 24.9% applied.

So the only variable not known/to be calculated is the Monthly payment OR full cost of the loan.

If only i could break that formula down ... but its been 2 decardes since I passed Applied Maths at A levels .

Looks like i better have my indemnity insurance up to date .

Any mathematicians out there ?

css_jay99

[Gonzo]

I don't think that I am going to be able to help a lot, but from my memory, the APR will include any charges, such as arrangement fees, evened out over the repayment period. Those will be in addition to the interest charges.

Have you allowed for those?

[MrRobin]

Yes you have the APR which is great, but you need to work out the nominal interest rate to then calculate the monthly payment.

So step 1 is use the fomula in my last post to work out nominal rate

Step 2 is use the formula in my first post (but use the nominal rate, not the APR) to work out the monthly payment and the cost of the loan

[css_jay99]

Yes you have the APR which is great, but you need to work out the nominal interest rate to then calculate the monthly payment.

So step 1 is use the fomula in my last post to work out nominal rate

Step 2 is use the formula in my first post (but use the nominal rate, not the APR) to work out the monthly payment and the cost of the loan

I'll give that a try now and let you know

cheers

css_jay99

[css_jay99]

Ok, i managed to solve the problem.

Client finaly gave me their nominal rate of interest (or whatever) which simplified the equation to:

LoanAmount = ((Premium - Deposit) * (1+Rate))
so i did not have to use the APR rate at all in the calculations

.
Thanks very much guys

css_jay99