This application allows you to calculate the values of a loan, including interest rate.
It is always difficult to verify the effective interest rate, because the calculation requires mastery of financial calculator.
For example, funding of $ 10,000 in 10 installments of $ 1,100 generates a total of $ 11,000 and an interest "apparent" of $ 1,000 or 10%. But the payments are monthly and so the calculation can not be done this way.
Interest in the above example would be 10% if $ 11,000 were paid in full at the end of 10 months. But we pay monthly. So the Annual equivalent Rate of this example is about 24%!
This application will quickly calculate the interest rate and will also allow the calculation of other factors, if the interest rate is already known.
The calculation of the interest rate is always done by approximation, and in this application, we use the Newton-Raphson method. Therefore, depending on the inputed values, the calculation may take a few seconds.
