# US 2013/0254084 A1 · System and method for effective interest rate calculation

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- Number: US 2013/0254084 A1
- Document ID: US20130254084A1
- Status: Published application
- Kind: A1
- Application number: 13/731,083
- Filed: 2012-12-30
- Published: 2013-09-26
- Earliest claimed: 2011-12-29
- Inventors: E. Keith Darrow
- Web page: https://patentgrep.com/patent/US20130254084A1

## CPC

- G06Q 40/00: Finance; Insurance; Tax strategies; Processing of corporate or income taxes
- G06Q 20/24: Credit schemes, i.e. "pay after"
- G06Q: INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR

## Abstract

Systems and methods can quickly and easily compute an effective interest-rate calculation, such as an annual-percentage rate (APR), offered in connection with a credit-card balance-transfer promotion. The systems and methods fully automate the process, allowing a consumer to instantly solve an effective rate on a credit card balance transfer offer with no special knowledge or skills. The process can work with all or some of the variables, in any order. The consumer can use the tool to see how the variables of the offer alter the effective annual effective percentage rate, enabling the consumer to better shop and compare credit card balance transfer offers.

## Claims

### Claim 1

A method for calculating an effective interest rate for a loan, the method comprising:
inputting discount percentage, loan rate, loan amount, loan begin date and loan end date into a computing device;
computing, with the computing device, an amount to pay back, A, by the following formula:
A
=
Loan


Amount
*
(
1
+
APR
365
)
Duration


of


Loan


i


n


Days
computing, with the computing device, an amount borrowed after a deduction of a discount, B, by the following formula:
B=Loan Amount−(Loan Amount*Points)
computing the effective interest rate, i, by the following formula:
i
=
365
*
[
log
[
Loan


Amount
*
(
1
+
APR
365
)
Duration


of


Loan


i


n


Days
Loan


Amount
-
(
Loan


Amount
*
Points
)
]
10
Duration


of


Loan


i


n


Days
-
1
]
,
wherein the above formulas are specifically coded on the computing device so that A, B and i behave like fixed-point calculations.

### Claim 2 (depends on 1)

The method of claim 1, wherein the computing device is selected from the group consisting of a desktop computer, a tablet computer, a laptop computer, a web-based server, and a smartphone.

### Claim 3 (depends on 1)

The method of claim 1, wherein the steps are coded in programming code, disposed in a non-transitory medium.

### Claim 4 (depends on 3)

The method of claim 3, wherein the programming code is a smartphone application.

### Claim 5 (depends on 3)

The method of claim 3, wherein the programming code is accessed via a web-based interface.

### Claim 6 (depends on 1)

The method of claim 1, wherein the loan is a credit card balance transfer offer.

### Claim 7

Software written in programming code disposed on a non-transitory computer readable medium, the programming code having program code segments for performing the following steps:
receiving an input from a user concerning a loan, the input including loan discount percentage, loan rate, loan amount, loan begin date and loan end date;
computing an amount to pay back, A, by the following formula:
A
=
Loan


Amount
*
(
1
+
APR
365
)
Duration


of


Loan


i


n


Days

Computing an amount borrowed after a deduction of a discount, B, by the following formula:
B=Loan Amount−(Loan Amount*Points)
computing the effective interest rate, i, by the following formula:
i
=
365
*
[
log
[
Loan


Amount
*
(
1
+
APR
365
)
Duration


of


Loan


i


n


Days
Loan


Amount
-
(
Loan


Amount
*
Points
)
]
10
Duration


of


Loan


i


n


Days
-
1
]
,
wherein the above formulas are specifically coded so that A, B and i behave like fixed-point calculations.

### Claim 8 (depends on 7)

The software of claim 7, wherein the software is loaded on a computing device, the computing device is selected from the group consisting of a desktop computer, a tablet computer, a laptop computer, a web-based server, and a smartphone.

### Claim 9 (depends on 7)

The software of claim 7, wherein the programming code is a smartphone application.

### Claim 10 (depends on 7)

The software of claim 7, wherein the loan is a credit card balance transfer offer.