1 / 9

Download Presentation
## Interest Rate

**An Image/Link below is provided (as is) to download presentation**
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.
Content is provided to you AS IS for your information and personal use only.
Download presentation by click this link.
While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

**What is Interest Rate ?**• The rate of amount paid by the borrowers to the lenders for the money borrowed.**You need to pay a certain amount as monthly payments with**this interest rate for the amount you borrowed from the lender. • It is expressed in %**Interest Rate Calculation**• Your inputs would be Initial Payment, Monthly Payment and Number of Years. • Initial Payment The amount borrowed from lender. • Monthly Payment The amount paid to the lender monthly till the term gets completed. • Number of Years The number of years you will pay the amount to the lender.**Interest Rate Formula**• The formula used for the interest rate calculation is : • i ≈ [ ( 1 + ( P/A ) ) 1/q - 1 ] q - 1 • Where, • q = log[ 1 + (1/N) ] / log2 • N = n * 12 (here n = number of years) • P = Payment Amount • A = Initial Amount • N = Number of Payments**Interest Rate Calculation**• Consider your initial payment is Rs. 30000, monthly payment is 500 and the number of years would be 6.**Apply all the values in the formula :**• i ≈ [ ( 1 + ( P/A ) ) 1/q - 1 ] q - 1 • = 6.24 %**Find it more easier to calculate with an Interest Rate**Calculator. • https://www.easycalculation.com/mortgage/interest-rate.php

More Related