Home  Journals  Finance and Credit  15(495) - 2012 April

Mathematical models and general properties of the loan

Available online: 11 April 2012

Subject Heading: LENDING

JEL Classification: 

It is proved two general properties of the credit, as mechanism providing payment and a reflexivity of loans provided by the lender. It is revealed a new economic content of internal rate of return of credit, which can be interpreted as ratio the sum of discounted at this rate the borrower's costs arising from the loan, and sum of discounted residues principal debt for the entire term of the loan.

Keywords: calculation, loan, lender, borrower, yield, effective interest rate, EPS, IRR, reinvestment, discounting

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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