Loan Schedules Flashcards
1
Q
Take a piece of paper and prove the prospective method for calculating the loan outstanding
A
2
Q
Take out a piece and prove the retrospective for calculating the loan outstanding
A
3
Q
Prove that retrospective and prospective methods for calculating the loan outstanding
A
4
Q
flat rate
A
total interest(total repayment - original loan amount) / original loan x term in years
5
Q
APR
A
rate of interest at which the present value of the amount borrowed equals the present value of the repayment (including all other charges), rounded to the nearer 0.1%
6
Q
A
