Loans with different nominal interest rates
Session
Management, Business and Economics
Description
In this paper we consider loans with different nominal interest rates applied during the maturity period, and the calculation of the effective interest rate of such types of loans is given. For the sake of simplicity, we consider loans with two different nominal interest rates. We also consider both loans without a fee and those with a disbursement fee. The structuring of such loans using the timeline is also given. The mathematical technique for necessary calculations is shown, and the financial calculator CASIO FC -100V is used to perform accurate calculations.
Keywords:
nominal interest rate, periodical interest rate, balance, structuring, effective interest rate, fee, grace period, moratorium.
Proceedings Editor
Edmond Hajrizi
ISBN
978-9951-550-47-5
Location
UBT Kampus, Lipjan
Start Date
30-10-2021 12:00 AM
End Date
30-10-2021 12:00 AM
DOI
10.33107/ubt-ic.2021.504
Recommended Citation
Limani, Ramadan, "Loans with different nominal interest rates" (2021). UBT International Conference. 528.
https://knowledgecenter.ubt-uni.net/conference/2021UBTIC/all-events/528
Loans with different nominal interest rates
UBT Kampus, Lipjan
In this paper we consider loans with different nominal interest rates applied during the maturity period, and the calculation of the effective interest rate of such types of loans is given. For the sake of simplicity, we consider loans with two different nominal interest rates. We also consider both loans without a fee and those with a disbursement fee. The structuring of such loans using the timeline is also given. The mathematical technique for necessary calculations is shown, and the financial calculator CASIO FC -100V is used to perform accurate calculations.