RFM presents the

*annual discount rate*that equates the sum of the

*present values*of all amounts received from the

*loan relationship*with the sum of the present values of all amounts, i.e. instalments and interest or annuities, commissions, protected …), which

*have been paid*with this respect. Discounting is performed in a compound (conformal) method.

#### With Interest rate calculator you can solve the most simple to the most complex cases.

You will all agree that the

**price of money**is defined by the time and the amount of

**getting the money**and the time and the amount of the

**paying back money**. The same is when being in role of a

**lender**,

**investor**or

**saver**. Performance is subject to time and the

**amount of borrowing**the money and the time and the amount of

**getting back**the money lent.

**How to fix the rate for money, which will contain everything?**

#### The method is given by the following equation

m | number of cash flows paid by the lender |

j | sequence number for the cash flows paid by the lender (draw down) |

aj | cash flow (drawdown) in period j |

n | total number of cash flows paid by the borrower |

k | sequence number of the cash flows paid by the borrower (repayment) |

bk | cash flow (repayment) of period k |

tj and tk | interval, expressed in fractions of a year between the date of the first cash flow and the date of cash flow j or k. |

**received loans**are on the left side of the equation and the amount of any

**repayment of principal**, interest and costs on the right side. In the case of investments, the

**amount of the investment**is on the left side of the equation and the value of investments and the

**income thereon**on the right.

### Calculate Interest Rate

**If you have up to 15 data, use this calculation.**

(If your browser does not support HTML5 date field, enter the date in the form yyyy-mm-dd)

- Date
- Payments – decimal point is point (.)
- Repayments – decimal point is point (.)
- Description (optional)

2013-07-01,1000,,Payments

2013-07-24,,1009.23,Repayments