Quantcast

Interest Savings - rate difference

vCalc Reviewed
Last modified by
on
Jul 24, 2020, 6:28:07 PM
Created by
on
Dec 31, 2013, 1:17:42 AM
`"interest delta" = |"Period[Loan(" P , i_1 , n ")]" - "Period[Loan(" P , i_2 , n ")]"|`
`(P)"Original Loan Amount"`
`(i_1)"Interest Rate" `
`(n)"Loan Term (n years)"`
`(i_2)"Interest Rate" `

This Interest Savings equation will do an amortization of a loan and will compare two different interest rates.  The equation will output the total interest cost difference between the two provided rates.  

INPUTS

  • P - principal amount
  • `i_1` - interest rate to be tested
  • `i_2` - interest rate to be tested
  • n - loan terms

NOTES

This equation is used to answer questions of the form:
What is the difference, in total interest paid over the life of the loan,  choosing between two different rates.

This equation will amortize the loan amounts with both of the given interest rates and output the difference in total interest charges for the two separate loans.  The answer will be the absolute value of the difference, showing only the delta between the two values.
This equation, Interest Savings - rate difference, is used in 1 page
  • Comments
  • Attachments
  • Stats
No comments
This site uses cookies to give you the best, most relevant experience. By continuing to browse the site you are agreeing to our use of cookies.