Author: Emily Ferreira
www.PayDayCashAdvanceLoans.biz understands that the average borrower may not fully understand how payday cash advance loans work and how the rates on these loans are calculated. Cash Advance Annual Percentage Rate (APR) is the percentage used to figure out the total cost of your cash advance loan because it takes into account all additional fees charged on your loan. APR is an interest rate that is different from the standard interest rate charged on a loan. APR can be useful for you as a basis of comparison between lenders because it can help you to evaluate different rates and loan options offered by various lenders. Personal loan lenders are required under the Federal Truth in Lending Act to disclose all terms and rates of the loan, such as the APR rate, in order to protect your rights as a consumer. APR does not have any effect on the actual amount of your loan payment, instead your payment is calculated based on the actual interest rate and the length of your loan term. We have provided an APR table below to help you understand the concept of APR and the costs associated with obtaining a loan.
|
|
AMOUNT OF LOAN
|
|
|
$100
|
$200
|
$300
|
$400
|
$500
|
|
LOAN TERM:
(# of days)
|
APR
|
LOAN FEE
|
|
7
|
1303.57%
|
$25
|
$50
|
$75
|
$100
|
$125
|
|
8
|
1140.63%
|
$25
|
$50
|
$75
|
$100
|
$125
|
|
9
|
1013.89%
|
$25
|
$50
|
$75
|
$100
|
$125
|
|
10
|
912.50%
|
$25
|
$50
|
$75
|
$100
|
$125
|
|
11
|
829.55%
|
$25
|
$50
|
$75
|
$100
|
$125
|
|
12
|
760.42%
|
$25
|
$50
|
$75
|
$100
|
$125
|
|
13
|
701.92%
|
$25
|
$50
|
$75
|
$100
|
$125
|
|
14
|
651.79%
|
$25
|
$50
|
$75
|
$100
|
$125
|
Here is an example taken from the table above to help you understand how APR is calculated:
If the amount of your loan is $100 and the length of the term is 7 days this would result in a 1303.57% annual APR.First, you need to divide the annual APR (1303.57%) by the loan amount ($100) which gives you an annual loan fee of $1303.57.In order to figure the daily loan fee, you would divide $1303.57 by 365 days to get a $3.57 daily fee.Finally, you would multiply the daily fee ($3.57) by 7 days which results in a $25 loan fee.
