Effective interest rate r 12 12 1 1 Loan Outstanding after 12 Months. Amortizing a Debt. Amount A 9826.
The amount one will pay for the use of someone elses moneyUsually expressed as a percentage so that this amount can be expressed for any period of time.
Thus if you are looking to calculate the interest and principal portions of payments four through seven set P1 4 and P2 7. A the future value of the investmentloan including interest. Less interest accrues when the amount is paid early because the loan balance will be less due to the extra principal payments. Also note that you could calculate this by first finding the interest I Prt 1000000758 6000 and adding it to the principal of 10000.