How correctly to calculate Fixed Payments (FP)? I offer doubting independently to understand the given problem.
On forums practically 100% of questions on accounts of payments under the mortgage concern to a FP. A FP - equal payments on all term of crediting. The Absolute FP (AFP) is equal to product of a Relative FP (RFP) on the sum of the credit (S)
AFP = RFP * S
On forums the various formulas are resulted account of a FP. There is a natural question. And what of the formulas correct? Let's stay on three doubtful formulas:
1. RFP = p / [1- (1+p)-n] = p / [1- 1/(1+p)n] = p + p/[(1+p)n -1]
2. RFP = p / [1- (1+p)1-n] = p / [1- 1/(1+p)n-1] = p + p/[(1+p)n-1 -1]
3. RFP = p / [1- (1+p)2-n] = p / [1- 1/(1+p)n-2] = p + p / [(1+p)n-2 -1], where
p - percent (interest) for a period (in accounts instead of 1% is applied 0,01 etc.)
n - quantity (amount) of payments - interest periods
Accounts under these formulas result in three various results. Here only two variants: or all three formulas Wrong (Wr), or one Correct (Cor), and two other Wr. Third is not given. Therefore it is necessary to define (determine), what of these formulas Cor. At the first stage at simple check two emerge obviously Wr of the formula. Further "Cor" is checked in Excel on function, which calculates a FP.
Possessing experience works with Excel, can pass (miss) simple check and decide the given problem.
SIMPLE CHECK
CHECK in EXCEL
So, we have found out, that from three formulas correct first is. But not all so is simple, because
All three formulas are applied in practice by various credit organizations. The least FP is received at
accounts under 1-st formula, greatest - till 3-rd. And the less FP remains up to a final settlement,
the this difference becomes more essential. That is especially important at advance settlement. Therefore
it is necessary to be interested not only interest rate, but also formula on which settle up a FP
availability 3 various formulas of account of a FP cause quite natural questions. It appears, that All 3 formulas, with the necessary clauses, correct. It was possible to understand it at once. But problem that on many sites there are no distinct explanations. The borrower in any case carries out of n-payments, but there are differences in quantity of fixed payments
1-st formula: all n-payments - fixed
2-nd formula: In total of n-payments. 1-st payment preliminary - not fixed. It always, ostensibly, it is less than a FP, since includes only interests behind 1-st an Interest Period (InP), which can be complete or partial (InP or month). But at complete period - 31 days, at High IRs and long-term crediting preliminary the payment can be more FP! Stayed (n-1) payments - fixed
3-rd formula: In total of n-payment.s 1-st and last payments not fixed. 1-st - only percents behind 1-st InP. Last - rests, "tails", etc. Stayed (n-2) payments - fixed. Probably, the banks adjust FP under an integer of roubles or dollars. "Tail" therefore is formed which passes on last not fixed payment. Further after each advance settlement the banks adjust already new reduced FP under an integer of monetary units. I.e. "tail" can decrease or be increased.
For all formulas:
- Term of the credit identical - n-interest periods
- n - total of payments - Fixed and not Fixed
- n; n-1; n-2 - parameters of a degree, quantity of a FP, number of a InP for a FP
- RFP3 > RFP2 > RFP1, since with reduction of quantity of a FP at
to the constant sum of the credit the size of a separate FP grows
Important theme. Without tax reform will not be essential growth economy and standard of living, neither new housing accommodation, nor decision of housing problem.
The Parasitic Inflationary Taxes (PIT) "eat" enclosed in production the capitals: constant and turnaround, salary and pension. This theme is more important than the mortgage, since from anything is received anything.
An Example of a PIT for a Working capital (WC)
- Inf - 0 %: the Prices, the Cost Price (CP) and rate of a CR do not vary. The businessman
Somebody on 100 Millions Roubles (mr) has acquired components. They were not necessary, and in one
year he has reseiled them till a CP for the same 100 mrs. Profit or Added Cost (AC) - 0. The taxes - 0.
Losses - PIT - 0. Is possible at necessities to acquire new components.
- Inf - 100 %:The Prices, CP and rate of a CR for one year are doubled. In the beginning of year 100
mCRs = 100 mrs. In one year 100 mCRs = 200 mrs. Somebody reseils furnishing on a new CP, since the prices were
doubled, for 200 mrs, receives imaginary inflationary profit (or imaginary inflationary AC) - 100 mrs, pay
the taxes (from the imaginary profit?!) - 50 % - 50 mrs. He still has 150 mrs or 75 mCRs, on which it is
possible to acquire only 75% of components. Real losses - 25% real buying power of a WC. It also is a PIT for
a WC.
The indicated example of a PIT is equal half of ifference between a new real CP and old, indicated in tax
declarations. I.e. at a zero Inf of a PIT is not present in general, since. The CP does not vary. With growth
of a Inf the burden of a PIT grows also.
The Losses from a PIT somebody will transfer on the salary of the hired workers. If he will cover the business, the workers and their families, in general, will stay without a piece of bread.
From the indicated examples it is visible, that at a zero Inf of a PIT is not present in general. With growth of a Inf the burden of a PIT grows also.
Tax reform
The essence of tax reform - legislative fixing in the tax declaration of the Cost Price in a CR, that will
allow to get rid of a PIT and to make production favourable and fast growing. It:
- New jobs and decrease(reduction) of unemployment
- Essential growth of real wages and pensions
- Additional tax receipts at fast growing economy
- Decrease (reduction) of expenditures on public account on the unemployment benefits
- Etc.
The mortgage begins with comparison of variants. Here 4 comparative tables with percentage by the rates -
0; 1;... 18; 19%/years and with terms of crediting - 5, 10, 15, 20, 25, 27 and 30 years:
1 - Monthly Fixed Payments (MFP)
2 - Factors of Credit Status (FCS). With the help of a FCS it is possible to expect as the much as possible
allowable sums real estates
3 - Sum of a MFP for all term of crediting
4 - Sum of percents (interests) for all term of crediting
