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| Name | APR vs Interest Rate by Chris Menard |
| Video Uploader | Video From Chris Menard |
| Upload Date | This Video Uploaded At 20-01-2020 12:10:48 |
| Video Discription | The interest rate is the cost of borrowing the principal amount. The APR is the interest rate plus other costs or fees. APR measures the true cost of borrowing money. In this video we will look at mortgage loans and use Excel to calculate the monthly payment, using the PMT function, then add the other loan fees and use the RATE function in Excel to calculate the APR. APR stands for Annual Percentage Rate. 02:23 interest rate vs apr 02:24 PMT function 04:00 Rate function to calculate APR 06:32 Truth in Lending Act (TILA) of 1968 gave us the APR. Use the PMT function with the Interest Rate. You need to know: 02:24 1. The term in either months or years 2. The loan amount 3. The interest rate PMT is a great function! It is one of many Financial functions in Excel. The payment function works on house/home loans and car/automobile loans. The PMT function returns the periodic payment for a loan. PMT has five arguments with three of them being required. =PMT (rate, nper, pv, [fv], [type]) Rate is the interest rate. If you have a home mortgage or auto loan, you pay your loan monthly, you divide the rate by 12 (12 months in a year). NPER is the total number of periods. For an auto loan, you may finance at 48 months, 60 months, or even 72 months. For a 30 year mortgage, NPER would be 360 (12x30). PV is the present value. It is how much money are you borrowing. The Annual Percentage Rate (APR) is the interest rate plus other cost or fees: 04:00 1. Loan origination fees 2. Application fees 3. Processing fees 4. Legal fees 5. Mortgage underwriting fees To calculate the APR, you need the PMT amount and use the RATE function in Excel. Other related videos and topics for APR vs Interest Rate. Annual Percentage Yield - APY vs Interest Rate https://youtu.be/9rEPA6f8tIw Chris Menard's Blog post on APY https://chrismenardtraining.com/post/annual-percentage-yield-vs-interest-rate DeKalb Chapter of CPAs - https://chrismenardtraining.com/events/dekalb-chapter-cpa-february-2020 over 10 Excel accounting videos. Nerdwallet calculator I used: https://www.nerdwallet.com/blog/mortgages/mortgage-apr-calculator/ #msexcel #personalfinance #APR #microsoftexcel #ratefunction #pmtfunction #financialfunctions Chris Menard's website: https://chrismenardtraining.com Other personal finance videos by Chris Menard The rule of 72 https://youtu.be/8FM9-voSDG0 APY vs the Interest Rate https://youtu.be/9rEPA6f8tIw And make sure you subscribe to my channel! -- EQUIPMENT USED --------------------------------- ○ My camera – https://amzn.to/3vdgF5E ○ Microphone - https://amzn.to/3gphDXh ○ Camera tripod – https://amzn.to/3veN6Rg ○ Studio lights - https://amzn.to/3vaxyy5 ○ Dual monitor mount stand - https://amzn.to/3vbZSjJ ○ Web camera – https://amzn.to/2Tg75Sn ○ Shock mount - https://amzn.to/3g96FGj ○ Boom Arm - https://amzn.to/3g8cNi6 -- SOFTWARE USED --------------------------------- ○ Screen recording – Camtasia – https://chrismenardtraining.com/camtasia ○ Screenshots – Snagit – https://chrismenardtraining.com/snagit ○ YouTube keyword search – TubeBuddy – https://www.tubebuddy.com/chrismenard DISCLAIMER: Links included in this description might be affiliate links. If you purchase a product or service with the links I provide, I may receive a small commission. There is no additional charge to you! Thank you for supporting my channel, so I can continue to provide you with free content each week! |
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| Tags | APR vs Interest Rate | Annual Percentage rate | APR calculation | personal finance | personal finance tips | rate function in excel | pmt function excel | mortgage loan calculation formula | mortgage loan calculator | mortgage loan calculator in excel | apr vs interest rate mortgage | apr vs interest rate personal loan | interest rates | what is apr | home loan | interest rates explained | nerdwallet calculator |
