This site gives a formula for a "constant ratio" as
MC=I/{1-[1/(1+I)ª]}
Where:
MC is the mortgage constant
I is the interest per month (1/12 the annual rate)
a is the period in months.
It is not possible to solve this to give a formula for the interest rate. Iterative methods can be used to obtain an approximate value of I.
For your loan numbers, the annual percentage rate (12i) is approximately 7.19%.
MC=I/{1-[1/(1+I)ª]}
Where:
MC is the mortgage constant
I is the interest per month (1/12 the annual rate)
a is the period in months.
It is not possible to solve this to give a formula for the interest rate. Iterative methods can be used to obtain an approximate value of I.
For your loan numbers, the annual percentage rate (12i) is approximately 7.19%.
