Agreement for Harmonization of Cost of Credit Disclosure Laws in …
element of the cost of borrowing; “R” is the cost of borrowing over the term of the loan, expressed as a rate per annum on the principal (the APR); “T” is the term of the loan in years. For the purpose of calculating the APR: - payments made on a loan will be applied first to the cost of borrowing and then to the principal; and, ................
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