Does anybody have a formula to calculate Mortgage APR written in Cold Fusion that I could have a look at?
All I've been able to find so far is the below, which doesn't exactly give me a complete formula like I need: APR – Annual Percentage Rate The formula used to calculate the APR uses the same principles as the IRR although the assumptions about the term are forced by the legislation, as is the resulting 1 decimal place rounding and 0.1% variation. The Consumer Credit Act lays down the fundamental formula for calculating APR, slightly simplified as follows:- Loan = Initial Fees + P1 / (1 + i) a + P2 / (1 + i) b + P3 / (1 + i) c + … Where P1, P2 etc are the periodic payments and a, b etc are the periods, usually 1,2 etc up to say 36 for a three year loan. The payments include fees and costs where relevant, as prescribed by the Act. The trick is to find i, which is the APR per period, and an iterative solution is essential. If you assume the periods are months, i will give you the monthly APR, which is then easily changed to the annual APR with formula (1 + i) 12 – 1 where i is the monthly rate. The iterative procedures used to calculate IRR rely on a formula similar to this same, fundamental formula. The results for the IRR and the APR are identical, given the same assumptions and accuracy restrictions. I would not recommend you use this ‘official’ formula to calculate the APR in practise, because the simpler, automatic spreadsheet functions come up with the same result. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Archives: http://www.houseoffusion.com/cf_lists/index.cfm?forumid=4 Subscription: http://www.houseoffusion.com/cf_lists/index.cfm?method=subscribe&forumid=4 FAQ: http://www.thenetprofits.co.uk/coldfusion/faq Your ad could be here. Monies from ads go to support these lists and provide more resources for the community. http://www.fusionauthority.com/ads.cfm
