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Nuffield Free-Standing Mathematics Activity Annual percentage rate with more than one instalment

Nuffield Free-Standing Mathematics Activity Annual percentage rate with more than one instalment. Lower APR. APR with more than one instalment. It’s a bargain! A few easy instalments. Is this APR really correct?. This activity is about finding and checking APRs.

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Nuffield Free-Standing Mathematics Activity Annual percentage rate with more than one instalment

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  1. Nuffield Free-Standing Mathematics Activity Annual percentage rate with more than one instalment Lower APR

  2. APR with more than one instalment It’s a bargain! A few easy instalments. Is this APR really correct? This activity is about finding and checking APRs

  3. APR with more than one instalment For one instalment the loan is: C =which gives the APR, i, as a decimal when a loan of £C is paid back by a single repayment £A after n years. The general APR formula for cases involving more than one instalment isC = where i is the APR expressed as a decimal k is the number identifying a particular instalment Akis the amount of the instalment k tkis the interval in years between the payment of the instalment and the start of the loan

  4. APR with more than one instalment When there are 4 annual instalments, A1, A2, A3 and A4 , the formula becomes Think about What is the formula for 3 annual instalments? What is the formula for 5 annual instalments?

  5. APR with more than one instalment • Reflect on your work Why is it important to know the APR when a loan is repaid in several instalments? What methods do you know for calculating the APR? Write down the formulae used when there is: 1 repayment, 2 repayments, and 3 repayments. How would you set up a spreadsheet to carry out the calculations required by the interval bisection method?

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