Duration of a loan from a given amount, interest rate and annuity formula
Description of the Duration of a loan from a given amount, interest rate and annuity formula
Formula for the calculation of the duration of a loan with a given amount, interest rate and annuity.
Formula
\[ N = \frac{ln\left( -\frac{m}{\frac{r}{n}\cdot C - m}\right )}{ln\left(1+\frac{r}{n}\right )} \ \]
Symbols
\(C\ \)
Start capital
\(m\ \)
Annuity
\(n\ \)
Number of payments per year
\(r\ \)
Nominal annual interest rate