The article is be in harmony 360 column author " Ji Zhe talks about each other gold with you " start work formerly, represent author individual point of view only, do not represent thaw 360 governments position, reprint contact author accredit please.

A few days ago, sagacious elder brother was borrowed from the company small 200 thousand. Monthly interest 4 minutes. Wait for frontal principal and interest, divide 12 months to repay. Colleague and I say the company is very foolish, the annual interest rate of 4.8% puts you, do then you buy product of bank conduct financial transactions flabby earn? (company and Construction Bank have exclusive conduct financial transactions, one year 6 nod the left and right sides keep this product)

I laugh, if the company is foolish, then we work to fool namely, more foolish. Actually a lot of people wait loan a moment in installment in product of computational bank loan, credit card when, be used to lunar interest to multiply with 12, computation goes out year change interest rate. But actually everybody made mistake of sex of a common sense: Wait for reimbursement of frontal principal and interest, usable capital decreases ceaselessly, reimbursement accrual a minute changeless. As time elapse, your reimbursement cost is higher and higher.

How is that calculated piece oh loan cost? Can do with a formula actually calm: IRR (in-house yield)

For instance, before paragraph I did time a 128 thousand yuan credit card cash in installment, I want every month to still give a bank 11200 yuan after, divide 12 months to pay off.

Open EXCEL, input a number so:

In the time of loan of the first input of Excel, from 1-12, represent 12 months. Next the 2nd inputs a bank to give me 128000 yuan respectively, offer 11200 yuan with the month of every first phase.

Because I still give a bank 11200 yuan, the cash on my hand flows become little, use negative number so - 11200 will convey.

Next as above graph, in the blank and unit case by, input:

=IRR (press time order pitch on all amount) *12

Get IRR, borrow or lend money is real interest rate. Why to want *12? Because lent 12 months.

The conclusion that reachs finally is, I cash of this credit card in installment interest rate is 9.1% , Quite low, pretty be to one's profit.

It is credit card not only in installment, IRR still can use computational room to borrow, the car is borrowed, flower, borrow, white, the net borrows loan, fund, P2P to wait a moment, the real interest rate of a lot of products.

2,

IRR still has all sorts of aberrant, e.g. , some loan receive poundage first, every month repayment of capital, how does accrual calculate.

Very simple, lift a chestnut, I borrow 50 thousand yuan, lend 6 months, pay poundage ahead of schedule 3000, every month returns 8333 yuan after.

This is equivalent to, I borrow at the beginning in one's hand cash flows, either 50 thousand, however 50000-3000=47000 yuan.

That IRR is:

If be every month first repayment of capital, the last month again payment of interest; If be every month prepaid accrual, where is repayment of capital of the last month?

The remain essentially the same despite all apparent changes is breathed out.

Want to know only, just began to take in one's hand how many money, and every month should return how many money, IRR formula is inputted by finally.

A magical formula, beside the help friend.

Author: Date of public of female singer sagacious: The journey of economic freedom (ID: Ifreeilove)

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