EVALUATION OF LOAN – MODELS OF EQUAL PRINCIPALS REPAYMENTS WHICH ARE PAID m TIMES IN YEAR
Journal Title: Acta Economica - Year 2011, Vol 9, Issue 15
Abstract
This paper presents the account of loan evaluation, i.e. loan value assessment during amortization with equal principals repayments which are paid m times in year. Given the loan evaluation moment, there could emerge two cases: a) the loan evaluation is made at the moment of k ‐th payment of interest and b) the loan evaluation is made after of k+t/m period. The loan evaluation is made based on the evaluation rate, i.e. effective interest rate.
Authors and Affiliations
Миливој Крчмар, Весна Пророк
Keywords
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