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A debt of 10500.17 euro is amortized in 6 years with 6-monthly constant amortization installments at the annual reward rate 2% and the accumulation rate
A debt of 10500.17 euro is amortized in 6 years with 6-monthly constant amortization installments at the annual reward rate 2% and the accumulation rate 1.78%.
Knowing that the debtor asks for the in advance conclusion of the contract after 2 years, 6 months, 2 days, recover:
- The debt due, assuming the 2-monthly market rate is 0.3%
- The effective rate of the contract for the debtor if the periodic expense are 10 euro.
Can please help me solve the following with a trace of procedures to understand better?
This is a sample exercise found in "Mathematical Finance: Theory and Practice" by Romagnoli
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