New answers tagged

-2

See above. A 30yr mtg with interest rate X% paid off in 15 yrs will be equivalent to having taken out a 30 year loan on the same date at lower than X% and very close to the rate of what a 15-yr loan would have been on that same date. Difference is so marginal as to not merit consideration, but provides much risk avoidance. Do I care that I paid 3.875% for 15 ...


-2

You are ALL missing the point. He is looking for the "equivalent"rate AFTER paying off the loan early. That is, on a 30 year loan at x% taken to term, I paid x%. That is not debatable. If I pay off the loan in 20 years, it is the "equivalent" of having taken out the loan ORIGINALLY at a much lower rate of .8x% or what have you. If I ...


1

Starting with the formula for the present value of an ordinary annuity: the rearrangement is straightforward. Unfortunately, this site does not welcome the input of mathematical formulas, so by verbal description Divide both sides by C Multiply both sides by i Subtract 1 from both sides Change the sign of both sides Take logarithms of both sides Divide ...


3

In excel use the nper() formula: Description Returns the number of periods for an investment based on periodic, constant payments and a constant interest rate. Syntax NPER(rate,pmt,pv,[fv],[type]) For a more complete description of the arguments in NPER and for more information about annuity functions, see PV. The NPER function syntax has the following ...


Top 50 recent answers are included