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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....
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- Spring '10