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I get 1,387% for a 365 day year.

It's compound interest, so it is 1.25^(365/31), or antilog(log(1.25) *

Sorry. Forgot to subtract out the principle, after which my calculation agrees.

Corrected: It's compound interest, so it is (1.25^(365/31) -1 ) *100%, or (antilog(log(1.25) * 365 / 31)) -1) * 100%.

princip*AL*

Roughly. Your 1387% would then become 1287%, but actually the 7 in there is rounded from 6.85, and in transcribing from your calculator you have missed out the 3 before the 6, so a more correct answer would be 1284%.

Over the course of the 400 year cycle on which leap year rules are based, the average year has 365.2425 days. I'm not sure this is in keeping with the official APR rules, but if you use that value in place of 365 in your formula, then you do in fact get 1286.10%.

Ok so your problem seems to be a little complicated to me. I think you should take out the assistance from the lawyer or so.

This one seems to work:-

I make it 1283.69%.

Rate for 31 days is 25%

To work out APR from that

((1 + 0.25)^(365/31))-1 = 12.8369

Multiply that by 100 and you get 1283.69%

I'd just like to thank everyone who has got back to me on this issue. I am now a lot more clearer on the calculations of APR rates. Many thanks.:D