This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: d. Repeat until the 0 marker on timeline, take 0 period and bring that to the tally(just like the last number) Periodic rate(Iper) = Stated annual rate/Number of payments per year = I/M (M = # of compounding periods) Number of periods = (Number of years)(Periods per year) = NM (N = # of years) Nominal Interest Rate = Annual Percentage Rate(APR) = Quoted or Stated Rate Effective Annual Rate = Equivalent Annual Rate(EAR) = EFF% EFF% = (1 + ( Inom / M )^M 1.0 Interest Owed = PMT * INT(interest of period)*M(number of periods) A loan that is to be repaid in equal amounts on a monthly, quarterly, or annual basis is called an amortized loan....
View Full
Document
 Spring '10
 JOSEPHPETRY

Click to edit the document details