Answer:
Yes, Regulation Z's Appendix J contains the mathematical formulas for closed-end APR calculations, but you can't solve these formulas manually. They can only be executed with a computer.
APRWIN is based on the Appendix J math and is seasoned software. It is accurate, but will produce garbage if you feed it garbage.
It's always a good idea to get a second opinion. The best way to validate your loan disclosure software is to engage a qualified consultant. This consultation should begin with verification of your loan payment calculations. If the loans in question involve Prepaid Finance Charges, your consultant should also verify your calculations of Amounts Financed. Finally, using verified data, your consultant will be able to verify the results of your software's APR calculations.
First published on BankersOnline.com 8/15/11
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