Event Title

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

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Oct 30th, 12:00 AM Oct 30th, 12:00 AM

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.