Amount of Interest from an Effective Rate, a Payment Frequency and a Balance
j.Rd
j()
calculates j, the amount of interest payable from an effective rate, a payment frequency and a balance.
j2eff_rate()
calculates the effective interest rate from the amount of interest payable, a payment frequency and
a balance.
Value
A numeric: j()
returns the calculated interest payment; j2eff_rate()
returns the effective rate of
interest.
Details
Interest payable (j): —
$$j = \displaystyle \left(\left(1 + er \right)^{\frac{1}{pf}} - 1 \right).bal$$
Effective rate (er): —
$$er = \displaystyle \left(1 + \frac{j}{bal} \right)^{pf} - 1$$
where \(j\) is the interest payment, \(er\) is the effective rate, \(pf\) is the payment frequency, and
\(bal\) is the balance. See amort.period()
in package
FinancialMath for further details.
See also
Other amort:
eff_rate()
,
get_amortval()