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Directive 98/7/EC of the European Parliament and of the Council of 16 February 1998 amending Directive 87/102/EEC for the approximation of the laws, regulations and administrative provisions of the Member States concerning consumer credit · European Union

'ANNEX III EXAMPLES OF CALCULATION Sum loaned: S = ECU 1 000 on 1 January 1994. It is repaid in a single payment of ECU 1 200 made on 1 July 1995 i.e. 1 ½ years or 546 (= 365 + 181) days after the date of the loan. The equation becomes: >TABLE> or: >TABLE> This amount will be rounded to 13 % (or 12,96 % if an accuracy of two decimal places is preferred). Second example The sum loaned is S = ECU 1 000, but the creditor retains ECU 50 for administrative expenses, so that the loan is in fact ECU 950; the repayment of ECU 1 200, as in the first example, is again made on 1 July 1995. The equation becomes: >TABLE> or: >TABLE> This amount will be rounded to 16,9 %. Third example The sum loaned is ECU 1 000, on 1 January 1994, repayable in two amounts, each of ECU 600, paid after one and two years respectively. The equation becomes: >TABLE> It is solved by algebra and produces i = 0,1306623 rounded to 13,1 % (or 13,07 % if an accuracy of two decimal places is preferred). Fourth example The sum loaned is S = ECU 1 000, on 1 January 1994, and the amounts to be paid by the borrower are: >TABLE> The equation becomes: >TABLE> This equation allows i to be calculated by successive approximations, which can be programmed on a pocket calculator. The result is i = 0,13226 rounded to 13,2 % (or 13,23 % if an accuracy of two decimal places is preferred). Sum loaned: S = ECU 1 000. It is repaid in a single payment of ECU 1 200 made in 1,5 years (i.e. 1,5 × 365 = 547,5 days, 1,5 × 365,25 = 547,875 days, 1,5 × 366 = 549 days, 1,5 × 12 = 18 months, or 1,5 × 52 = 78 weeks) after the date of the loan. The equation becomes: >TABLE> or: >TABLE> This amount will be rounded to 12,9 % (or 12,92 % if an accuracy of two decimal places is preferred). Second example The sum loaned is S = ECU 1 000, but the creditor retains ECU 50 for administrative expenses, so that the loan is in fact ECU 950; the repayment of ECU 1 200, as in the first example, is again made 1,5 years after the date of the loan. The equation becomes: >TABLE> or: >TABLE> This amount will be rounded to 16,9 % (or 16,85 % if an accuracy of two decimal places is preferred). Third example The sum loaned is ECU 1 000, repayable in two amounts, each of ECU 600, paid after one and two years respectively. The equation becomes: >TABLE> It is solved by algebra and produces i = 0,13066 which will be rounded to 13,1 % (or 13,07 % if an accuracy of two decimal places is preferred). Fourth example The sum loaned is S = ECU 1 000 and the amounts to be paid by the borrower are: >TABLE> The equation becomes: >TABLE> This equation allows i to be calculated by successive approximations, which can be programmed on a pocket calculator. The result is i = 0,13185 which will be rounded to 13,2 % (or 13,19 % if an accuracy of two decimal places is preferred).`

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Source: EUR-Lex (Cellar) · retrieved 2026-10-22 · Text as adopted (Official Journal); later amendments are not incorporated in this text.