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freeware utilities avg interest calculator
Calculate average interest for a loan
We need to solve following matter: what is the average interest rate for a loan, for given loan amount, monthly payment, number of months and residual value. This equation can be solved only by numerical means.
Thus, the following equation must be solved:
Given the rather smooth behavior of this equation, this calculator employs the Newton-Raphson method with an educated initial guess:
However, the Newton-Raphson method requires the calculation of the derivative of a function at the reference point. Why should you bother with all this math? Now you can use our FREE Average Interest Calculator.
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![[r]guess](/ENG/images/content/guessl.gif)
Lang: Romanian
