(10C) Mortgage Loan Interest Rate

[Dieter]

(11-01-2018 03:22 AM)Albert Chan Wrote:  For fast calculation, assume n² ~ n²-1, and drop O(i³) terms:

C = i/2 + ((ni + 3)² + 3) / 12

Ignoring i/2 term, ni = √(12 C - 3) - 3 = 0.460719
i = (ni)/n = 0.012798, or annual rate of 12I = 15.4%

Repeat again with i/2 term, solve for ni, annual rate = 15.0%

Albert, this is another case where you may have a good idea but... even after reading your post several times I simply don't understand what you want to say. I neither understand where you get these formulas from nor which method you want to propose.

Could you please give the complete algorithm (for the general case) and a detailled explanation for calculating the interest rate? If the first estimate is 0,0134808, how do you get the exact value 0,01250454600 from this?

Dieter