SHOW IN EXCEL NOT LIKE THE FIRST PICTURE. ONLY EXCEL

Ans. Annual Percentage Ratio (APR). A standard calculation used by lenders, it is designed to help borrowed compare different loom options. For example, a len with a lower stated interest rado may be a bad value if its fees are to high Likewise, aloom. with higher stated sate with very low value or fees could be con expeptional value APR calculations in corporate these fees into a single rate you can then compare loans with different fees, rates or different terms. APR Formula and Calculation Ferroulo: c//((1+r)^n] - 11/[2(1+r)"]=P a $ 100,000 the amount of the loan r = 12% annual rate= (0.12 -0.1 for 12 menths n: 360 (12 monthly payments per year times to years) 2. APR = $1,098,61 payments per month But it is given that ber menth payment is $10240 which is too high than our calcuktions. Hence it is not a reasonable clam. It should the and have said the payment would be $10 28,61 per month I and extre for their fees but its value is quiet low.. In my opinion there should be high fees to loading agency that aduerties for a home mortgage loans. And there should be higher interest rate. There are number of problems related to APR Jean Early - bay off Penalties Big Jees support Ruby Concerns The Insuarenco Pitch Becomputed Interest show on EXCEL showing steps and all work 3.3.3 Exercises Exercise 3.12. A lending agency advertises in the paper an APR of 12% on a home mortgage with a term of 30 years. The ad claims that the monthly payment of $100,000 will be $10,290. Is this claim reasonable? What should the ad have said the payment would be to the nearest dollar)? What do you think happened here