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An analysis of interest and principal payments, interest rates and time in common and uncommon loans using present value tools


, : An analysis of interest and principal payments, interest rates and time in common and uncommon loans using present value tools. Agricultural Economics Report, Department of Agricultural Economics, Michigan State University (459): ii + 61

This report analyzes a variety of loan programmes available in the USA. After introducing basic concepts, definitions and tools, present value formulas are used to compare different types of loans including fixed payment, balloon payment, moderated payment, blended rate, fixed principal payment, and disguised interest costs loans. The application of present value tools to the analysis of each type of loan is introduced and then illustrated by example.

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