Calculation class
Example of real interest rate’s calculation
The real interest rate is calculated by using the following formula:
Where,
i = annual real interest rate
A = initial amount of the loan
n = the amount of customer’s payments (including loan payments, interest payments and other payments)
N = the number of last loan payment
Kn = shows the amount of the ordinary n-th payment (loan payment, interest payments and other payments) at the moment of loans assignment and during the loan’s duration
Dn = shows at the moment of loan assignment until the loan’s ordinary n-th payment including, nevertheless the day of loan assignment is not included in the calculation.
Examples
Example 1
-the amount of the loan – 1,500,000 AMD
- the loan repayment term– 24 months
-annual nominal rate – 22%
-the loan repayment mode – annuity
- other single payments done by the customer the day of loan assignment
- Application review fee – 10 000 AMD
- Commissions= 15 000 AMD
-other lump sum payments related to loan assignment
- lump sum of estate valuation – 15 000 AMD
The annual real interest rate of the loan mentioned above is 27.94%.
Example 2
-the amount of the loan – 3,000,000 AMD
- the loan repayment term – 36 months
-annual nominal rate – 21%
-the loan repayment mode – annuity
- other lump sum payments done by the customer the day of loan assignment
- Application review fee – 10 000 AMD
- Commissions = 24 000 AMD
-other lump sum payments related to loan assignment
- estate valuation – 15 000 AMD
The annual real interest rate of the loan mentioned above is 24.64%.
Example 3
-the amount of the loan – 6,000,000 AMD
- the loan repayment term – 48 months
-annual nominal rate – 19%
-the loan repayment mode – annuity
- other lump sum payments done by the customer the day of loan assignment
- Application review fee – 10 000 AMD
- Commissions= 42 000 AMD
-other lump sum payments related to loan assignment
- lump sum of estate valuation – 20 000 AMD
The annual real interest rate of the loan mentioned above is 21.57%.
Example 4
-the amount of the loan – 8,000,000 AMD
- the loan repayment term – 54 months
-annual nominal rate – 18%
-the loan repayment mode – annuity
- other lump sum payments done by the customer the day of loan assignment
- Application review fee – 10 000 AMD
- Commissions= 56 000 AMD
-other lump sum payments related to loan assignment
- lump sum of estate valuation – 30 000 AMD
The annual real interest rate of the loan mentioned above is 20.29%.
