Stclements
Board Regular
- Joined
- Aug 6, 2008
- Messages
- 236
I want to write an excel formula that will allow me to evaluate the real interest rate of return on a loan where the capital depreciates whilst the interest payable remains that payable on the original sum.
Thus if the original sum is £5000 at an interest rate of 10% means that the interest payable is 500 per annum
but if 10% of the capital was paid thus the outstanding capital is now £4500 but interest payable at 10% of the original sum means that £500 will be paid of a debt of £4500 meaning the real rate is 11.11% etc
Thus if the original sum is £5000 at an interest rate of 10% means that the interest payable is 500 per annum
but if 10% of the capital was paid thus the outstanding capital is now £4500 but interest payable at 10% of the original sum means that £500 will be paid of a debt of £4500 meaning the real rate is 11.11% etc