As a general rule of thumb, take the APR and divide it by 2 to get the base rate.

My maths is dull and few days back I got a APR calculator on the internet. When I calculated the apr against my borrowings, I found it lot more different to what the bank calculated. Now, I want to calculate it myself . Can anybody tell me the calculations?

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As a general rule of thumb, take the APR and divide it by 2 to get the base rate. Once you get the base rate, multiply that by the number of years you have borrowed the money for.

Example:

$10,000 over 5 years @ 12.3% APR

12.3 divide by 2 = 6.15 x 5 = 30.75

$10,000 x 30.75% = $3075

Therefore, total repayable amount is $10,000 + $3075 = $13075 divided by 60 monthly payments = $217.92


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