EVALUATION OF LOAN – MODELS OF EQUAL PRINCIPALS REPAYMENTS WHICH ARE PAID m TIMES IN YEAR

Abstract

This paper presents the account of loan evaluation, i.e. loan value assessment during amortization with equal principals repayments which are paid m times in year. Given the loan evaluation moment, there could emerge two cases: a) the loan evaluation is made at the moment of k ?th payment of interest and b) the loan evaluation is made after of k+t/m period. The loan evaluation is made based on the evaluation rate, i.e. effective interest rate.