Regulation 8 Calculation where fixed-sum credit is provided and repayable in single lump sum

In the case of an agreement for fixed-sum credit provided in a single lump sum repayable at the end of a specified period in a single lump sum being repayment of the credit and of the total charge for credit, the annual percentage rate of charge is given by the following formula—

$$100[{(1+\frac{C}{P})}^{\frac{1}{t}}-1]$$

• C is the total charge for credit;

• P is the amount of the credit; and

• t is the period beginning with the relevant date and ending with the date of repayment expressed in years.