Post: APR question

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avatar image MYC4 STAFF
Investor
Level 6
  APR question
Posted 26.03.2009 15:50 CET

Dear Investors,

further information can be also found among here: you will see a practical example and the calculation of APR.

Kind regards,

Paolo Iezza
MYC4 A/S


avatar image David Costa
Investor
Level 6
  APR question
Posted 26.03.2009 15:13 CET

$0 $0Quote from: Wouter Tromp on 26.03.2009 11:33 CET$0 $0See the following file:$0 $0 $0 Loancalculation2 - APR.xls$0 $0 FYI: you should have a look at my site for more usefull information:$0 $0 $0 http://www.myc4watch.com $0 $0 $0 $0WOW this is very interesting - thanks a lot. Finally more numbers :)$0



avatar image Peter Schmidt
Investor
Level 10
  Externe links
Posted 26.03.2009 14:51 CET

Ho Tim
Måske i også har plads til thomas' side

http://myc4b.gladkristen.dk/

Der er lignende værktøjer  somi de øvrige-- men på dansk og specielt kan jeg lide
http://myc4b.gladkristen.dk/index.php?option=com_content&view=article&id=63:taet-pa-drommen&catid=37:statistik&Itemid=67
Hvis jeg har sat penge ind på kontoen og ikke vil placere dem alle på en gang-- med dette link kan man restfinanciere og så stille og roligt blive budt ud
Peter


avatar image MYC4 STAFF
Investor
Level 6
  APR question
Posted 26.03.2009 12:05 CET | Edited 08.01.2016 06:19 CET

Quote from: Wouter Tromp on 26.03.2009 11:33 CET
See the following file:


Loancalculation2 - APR.xls

FYI: you should have a look at my site for more usefull information:


http://www.myc4watch.com

We have made a link to myc4watch and other relevant "destinations" here (About >> What is MYC4)... so you can always find it.

Have a great day all,

tim
co-founder


avatar image Wouter Tromp
Investor
Level 10
  APR question
Posted 26.03.2009 11:30 CET | Edited 14.09.2015 03:51 CET

See the following file:


Loancalculation2 - APR.xls

FYI: you should have a look at my site for more usefull information:


http://www.myc4watch.com



avatar image GrowthAfrica
Provider
Level 10
  APR question
Posted 26.03.2009 08:53 CET | Edited 27.05.2015 00:17 CET

Hi David,

If you have excel (or any other spreadsheet), this is how you get the APR:

Input in any cell: =RATE([number of repayments],-[the monthly repayment amount],[the disbursed amount*])

This gives you the monthly interest rate - to annualise this you simply enter into another cell: =((1+[RATE])^12)-1

And there you go!

Best,
Johnni

*The disbursed amount is the loan amount (principal) less closing fee (MyC4, Lender & Provider)

Your example:
RATE(12,-81.20,812.52)=2.91%  -->  (1.0291^12)-1=41.09%
 


avatar image David Costa
Investor
Level 6
  APR question
Posted 25.03.2009 23:34 CET


Quote from: Waya on 25.03.2009 23:10 CET
Well, the interest commision of 14 % is straightforward enough, as are the investor interest of 10%, for a total of 24 %.

The closing fee is appx € 57 of the € 812 the borrower receives - this does not seem to be the remaining 17%, but it is when you annualize it (I believe, I haven't made the calculation) - that is, you calculate what the interest per annum would have to have been to make that amount, with monthly repayments.

Anyway, I think that is how the calculation is done - more or less.
Thanks for your reply - with the closing fee the lender + myc4 fees are 20.4% + the 10%
it should be 30.4% not sure where the rest comes from but calculate the APR in details
tomorrow. It is certainly not a low commission from the provider + lender. Perhaps it would be
useful if myc4 could add the local average from other alternatives - I could see how this
would scare some potential investors.

I don't think that the Kiva model is good enough either (often the lender has the impression that no
interest is charged but if you look at the partner page they do show the interest rate and the
local average too).

In my latest blog entry http://microfinance.fm/microcredit-online/can-kiva-cope-with-the-demand
I looked at their system and apparently they can't cope with the demand and will be starting
offering US microcredit soon.

Some MFI seems rather unhappy about the journal entries and restrictions (maximum credit
1200$ and others).
Cheers
David



avatar image Waya
Investor
Level 9
  APR question
Posted 25.03.2009 23:10 CET | Edited 22.08.2015 17:31 CET

Well, the interest commision of 14 % is straightforward enough, as are the investor interest of 10%, for a total of 24 %.

The closing fee is appx € 57 of the € 812 the borrower receives - this does not seem to be the remaining 17%, but it is when you annualize it (I believe, I haven't made the calculation) - that is, you calculate what the interest per annum would have to have been to make that amount, with monthly repayments.

Anyway, I think that is how the calculation is done - more or less.



avatar image David Costa
Investor
Level 6
  APR question
Posted 25.03.2009 22:13 CET | Edited 21.05.2019 03:13 CET

Hello,
I can't figure out where the 41% APR comes from on this loan
https://www.myc4.com/Portal/WebForms/Opportunities/ViewOpportunity.aspx?OpportunityId=5281
161 Euro is not 41% so I am not entirely sure on how did the calculation reached 41%.
I did check the commission details and including everything I can't reach 41%.
Any help is highly appreciated !
Regards
David


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