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>And declining balance loans often have up-front fees that are separate from the quoted interest rates. As I mentioned in my response to your comment above, yo
by unclebucknasty 13y ago
>And declining balance loans often have up-front fees that are separate from the quoted interest rates.
As I mentioned in my response to your comment above, you appear to be using the "strict" (mathematical) definition of APR vs flat-rate calculations. In the U.S., APR is generally understood to be inclusive of up-front fees as defined by the Truth In Lending Act.
Whether or not this is perfect in practice, on this thread (and in the article), the term APR is meant to convey a number that is inclusive of all fees and non-interest charges, such that it reflects the truer cost of the loan.