Hi,
I am using the MFT pricing tool to calculate the APR/EIR.
I have noticed that equal installment is constant irrespective of increasing/decreasing/deleting the upfront fee. For example a 12 months loan of USD1,000 @ 1% per month with USD10 upfront fee has (equal) installment of USD88.85 and this installment amount remains the same without the upfront fee.Should the equal installment size has some relationship with the upfront fee?
I will be thankful if someone can explain followings in the MFT pricing tool:
1) How increment (G13) is being calculated for upfront fee?
2) How period (H9) is being calculated and why its results are in %?
Regards
Awais
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Posted by: Muhammad Awais <mawaisq@hotmail.com>
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