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What is Average Interest Rate Calculation about?

This document discusses calculating the average interest rate for an aircraft loan. It defines key terms like the number of repayment years (nPAY) and useful service life (nDEP). It shows that the average interest rate (pav) can be calculated by taking the total interest payments over the loan period and dividing by the original principal (k0) and useful service life. The annual loan payment (a) and remaining principal (kn) are used to determine the interest payments versus principal payments for each year.

Author

Ahmad

Language

EN