I'm not convinced I'm getting the correct figure when I calculate an APR rate.
I have an amount I want to loan £100 I want to pay this back in 14 days. Interest for this loan is 15% The fee for this service is 0.20p per day. From this I calculate the fee to be £17.80
So, my calculation to get APR is as follows
APR = ((117.80-£100/£100)/((14/365)*100))
I get 2970%
Is this correct? Or is my formula wrong?
Any help would be greatly appreciated
Jonah
Assuming the fee is paid at the end of the loan, I would do $$\left(\frac{100+100\times 0.15+0.2\times 14}{100}\right)^{365.25/14}-1 \approx 70.80$$ so an APR of about 7080%.