Max interest rate with APR

This example brings in every concept from this chapter - but all you will need to fill in is the maximum interest rate. In this case, there is an amortizing fee on the loan that needs to be taken into account when calculating the maximum interest rate.

The only difference between having a fee and having no fee for the purpose of maximum interest rate is that the monthly payment changes. Fill in the maximum interest rate using the APR rate instead of the loan rate, then calculate the annualized max rate!