9.—(1) In relation to any agreement, the annual percentage rate of charge is a rate per annum compounding annually expressed as a percentage such that—
(a)the sum of the present values as at the relevant date of all repayments of credit and of the total charge for credit; and
(b)the sum of the present values as at the relevant date of all credit under the agreement,
would, when calculated at that rate, be equal.
(2) For the purposes of this regulation, the present value as at the relevant date—
(a)of a sum to be paid on or before that date, is that sum; and
(b)of a sum to be paid at a later date, is such a value as is given by the following formula—
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A is the sum to be paid;
r is the rate per annum expressed as a percentage; and
t is the period beginning with the relevant date and ending with the date of payment of the sum expressed in years.
(3) In a case where more than one rate per annum is given under the foregoing provisions of this regulation, the annual percentage rate of charge determined under this regulation is the positive rate per annum nearest to zero or, if no positive rate is so given, the negative rate nearest to zero.