RatedrillAPR implied by a payment
A time value of money problem from Ratedrill. Solve it with one answer box, with fresh numbers on every attempt and the formula, calculator keystrokes and Excel version in the worked answer, and it is checked the moment you submit.
The task
A lender offers $10,500 to be repaid in 36 monthly payments of $361.62. What APR (the monthly rate × 12) does this payment imply?
What this problem teaches
I/Y comes out as the monthly rate. Multiply by 12 for the APR. Set P/Y = C/Y = 1, so I/Y is the rate per period. Cash you pay out is negative and cash you receive is positive.
A hint if you get stuck
Solve for the monthly rate with N, PV and PMT known, then multiply by 12.
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