| Abstract: | 1. Introduction. The object of this work is to show that the effective rate of interest of loans practically can be calculated with so great an accuracy that all practical demands regarding accuracy are more than satisfied. As will be seen from section 5, the effective rate of interest can be very quickly calculated by use of inverse linear interpolation for ordinarily occurring cases with a result which in general is correct with 3, 4 or more figures all according to practical demands. These methods can generally be used for all types of loans. |
