Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What is the difference between ARP and Interest rate?

April 26, 2017ARP difference Interest rate

0

Posted

What is the difference between ARP and Interest rate?

1 Answer

0

Posted

The interest rate is the interest rate used in the calculation, however the ARP is the effective annual percentage rate for the loan depending on your calculation methods. The ARP is an effective way of comparing two different loans from different lending institutions. The ARP is calculated per Regulation Z appendix J.