From: "Tim" 
Newsgroups: uk.finance
Subject: Re: Formula for calculating APR from Monthly interest
Date: Sat, 19 Aug 2006 10:04:31 +0100

> "Marcus Fox" wrote:
> >APR = 1+(monthly rate/12)^12-1
> >
"Peter Saxton" wrote
> Why do you divide the monthly rate by 12?

Also - why does he both add one to, and
subtract one from, "(monthly rate/12)^12"?!
[Brackets in wrong place...]

Methinks he meant either:

APR = (1+monthly rate)^12-1

or:

APR = (1+yearly rate/12)^12-1

[Not that these would necessarily give the APR anyway!]