Odd-Period Calculations
+
PV
1
−
+
×
i
(1
Where:
PV = loan amount
DAYS = actual number of days until the first payment
PMT = periodic payment amount
N = total number of payments
FV = balloon payment amount
Advance Payments
PMT
where:
PMT = payment amount
PV = loan amount
FV = balloon payment amount
i = periodic interest rate (as a decimal)
N = total number of payments
#ADV = number of payments made in advance
Modified Internal Rate of Return
where:
n = total number of compounding periods
NFV
= net future value of positive cash flows
P
NPV
= net present value of negative cash flows
N
DAYS
×
=
i
30
1
×
×
S
PMT
)
i = periodic interest rate as a decimal
S = 1 if DAYS < 30
S = 0 if DAYS ≥ 30
−
PV
=
−
+
i
1
(1
=
MIRR
100
−
−
+
N
i
(1
)
−
i
−
−
+
N
FV
i
(1
)
−
−
N
ADV
(
#
)
)
+
#
i
n
1
NFV
−
P
1
−
NPV
N
B: More About Calculations 253
−
+
N
FV
i
(1
)
ADV