BobbiO2000
|
70/400 = 17.5% That's just part of the calculation.
BUT, that was over 14 DAYS.
The APR is an annual rate. ANNUAL PERCENTAGE RATE, doah.
If you computed the APR at a DAILY RATE, it's 456%
((70/400) /14 days) X 365 days/year
Figuring the APR, easy way, at a MONTHLY RATE 420%
figuring 14 days as half a month,
((70/400) / 0.5 month) X 2 x 12 month/year
Either way, it's USUARY.
Think of it they way: they profited $17.50 per $100 they advanced you.
That would be the APR, if you made $17.50 per $100 , IN A YEAR! Even Wall Street doesn't do that.
My God, what are we teaching in schools? It's certainly not finance, accounting, and money management. |
dwilson6972
 |
If I set my financial calculator to 365 payments per year to accommodate the very short accumulation period, I get a result of 422.88% when I enter the present value of $400, enter the future value of $-470, and set the number to 14 to calculater the annual percentage rate for fourteen days. Even if you paid $70 dollars in one year, you'd be paying 16.13% interest. Hope this helps. |
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