(10C) Mortgage Loan Interest Rate

11012018, 02:39 PM
Post: #5




RE: (10C) Mortgage Loan Interest Rate
(11012018 03:22 AM)Albert Chan Wrote: Let compounding factor C = nR/P, so C = 1 if i = 0 Hi, Dieter The formulas were meant for rough estimation, using "normal" calculators (no X^Y) All formula were derived from C Taylor expansion at i = 0 The quadratic formula were using more accurate form: 2c / (b  sqrt(b²4ac)) where, a= (n²1)/12, b=(n+1)/2, c=1C, a nonpositive number. This is how the quick formula is derived: C = 1 + (n+1)/2 i + (n²1)/12 i²  (n²1)/24 i³ + ... ~ 1 + (n+1)/2 i + (ni)² / 12 ~ i/2 + (3 + 9 + 6(ni) + (ni)²) / 12 = i/2 + ((ni + 3)² + 3) / 12 To get more accurate interest rate, do interpolation (but X^Y is required): i1 = 0.013408, C1 = n*i1 / (1  (1+i1)^n) = 1.267246 i2 = 0.012497, C2 = n*i2 / (1  (1+i2)^n) = 1.247888 Interpolate for C = nR/P = 1.248048, we get i = 0.0125045 

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Messages In This Thread 
(10C) Mortgage Loan Interest Rate  Gamo  10312018, 04:49 AM
RE: (10C) Mortgage Loan Interest Rate  Albert Chan  11012018, 03:22 AM
RE: (10C) Mortgage Loan Interest Rate  Dieter  11012018, 12:40 PM
RE: (10C) Mortgage Loan Interest Rate  Albert Chan  11012018 02:39 PM
RE: (10C) Mortgage Loan Interest Rate  Dieter  11012018, 08:11 PM
RE: (10C) Mortgage Loan Interest Rate  Gamo  11012018, 02:00 PM
RE: (10C) Mortgage Loan Interest Rate  Albert Chan  11012018, 05:02 PM
RE: (10C) Mortgage Loan Interest Rate  Albert Chan  11032018, 12:02 AM
RE: (10C) Mortgage Loan Interest Rate  Albert Chan  11032018, 01:51 PM
RE: (10C) Mortgage Loan Interest Rate  Dieter  11032018, 06:11 PM
RE: (10C) Mortgage Loan Interest Rate  Albert Chan  11032018, 11:34 PM
RE: (10C) Mortgage Loan Interest Rate  Albert Chan  11062018, 02:26 AM

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