On continuous financial flows repayment of the loan under a complex percentage

Abstract

Purpose: the conditional optimization repayment using a simple continuous interest at the rate of p on a continuous cash flow of a given power density. Discussion: the peculiarity of this work is the simultaneous consideration of the temporal and the timeless value of money. Introduced the concept of equivalence interest rate of the loan. This is a continuation of similar studies for simple interest calculation. Saved all author's definitions and terms of this work. Results: we offered a wide range of possible repayment plans for a loan granted for a complex (uninterrupted) interest. In practice, for the most part, uniform repayment of the loan is applied and sometimes on progressions. Repayment plans based on exponential density curves allow taking into account more subtle financial opportunities or interests, both of the borrower and the lender.