(1) In this Act the APR shall be the equivalent, on an annual basis, of the present value of all commitments (loans, repayments and charges), future or existing, agreed, in the case of a credit agreement, by the creditor and the consumer and, in the case of a hire-purchase agreement, by the owner and the hirer, calculated to the nearest rounded decimal place in accordance with the method of calculation specified in the Fourth Schedule.
(2) The Bank may by regulations amend the method of calculation of the APR specified in the Fourth Schedule either generally or in relation to any form of credit covered in this Act or in relation to hire-purchase agreements.
(3) The Bank shall, from time to time, publish guidelines to explain the method of calculation of the APR under this Act.