cft: Calculates the Total Financial Cost (CFT)

In tvm: Time Value of Money Functions

Calculates the Total Financial Cost (CFT)

Description

This is the IRR of the loan's cashflow, after adding all the extra costs

Usage

cft(amt, maturity, rate, up_fee = 0, per_fee = 0)

Arguments

amt	The amount of the loan
maturity	The maturity of the loan
rate	The loan rate, in effective rate
up_fee	The fee that the loan taker pays upfront
per_fee	The fee that the loan payer pays every period

Details

It is assumed that the loan has monthly payments The CFT is returned as an effective rate of periodicity equal to that of the maturity and the rate The interest is calculated over amt + fee

Examples

cft(amt = 100, maturity = 10, rate = 0.05, up_fee = 1, per_fee = 0.1)

tvm documentation built on Aug. 30, 2023, 5:19 p.m.