USING A FINANCIAL CALCULATOR TO CALCULATE EFFECTIVE 1a) Interest Based on Original Loan Amount INPUTS Original Loan Amount PV USD 100 Fees and Commission PV USD 0 Loan Period n Months 3 Nominal Interest Rate i % per month 2 OUTPUTS Monthly Payment Monthly Payment -Principal USD -33.33 Monthly Payment -Interest USD -2.00 Monthly Payment -Total USD -35.33 Effective Interest Rate 2.97% 1b) Interest Based on Declining Balance INPUTS Original Loan Amount PV USD 100 Fees and Commission PV USD 0 Loan Period n Months 3 Nominal Interest Rate i % per month 2 OUTPUTS Monthly PaymentMonthly Payment -Principal -32.68 Monthly Payment -Interest -2.00 Monthly Payment -Total USD -34.68 Amount Paid in Interest Total Paid USD -104.03 Amount Paid in Interest 4.03 Effective Interest Rate 2.00% 2) Interest Deducted Up Front from Original Loan Amount INPUTS Total Loan Amount PV USD 100 Loan Period n Months 3 Nominal Interest Rate i % per month 2 OUTPUTS Amortised Monthly Payment Amortised Monthly Payment -Principal USD -32.68 Amortised Monthly Payment -Interest USD -2.00 Amortised Monthly Payment -Total USD -34.68 Actual Monthly Payment Actual Monthly Payment (Principal Only) USD -33.33 Amount Paid in Interest USD -4.03 Original Loan less Interest Payment USD 95.97Effective Interest Rate 2.08% 3) Loans with Compensating Balance INPUTS Total Loan Amount (including fees) PV USD 100 Loan Period n Months 3 Nominal Interest Rate i % per month 2 Amount Required to be kept on Deposit USD 25 OUTPUTS Amount Received by Borrower Amount Received USD 75 Amortised Monthly Payment Amortised Monthly Payment -Principal USD -32.68 Amortised Monthly Payment -Interest USD -2.00 Amortised Monthly Payment -Total USD -34.68 Effective Monthly Payment Income Forfeited USD -0.50 Effective Monthly Payment USD -35.18 Payment Schedule Amount Received 75 Payment Month 1 -35.18 Payment Month 2 -35.18 Payment Month 3 (Final Month -when deposit is returned) -10.18Internal Rate of Return <=> Effective Interest Rate 4.32%CALCULATE EFFECTIVE INTEREST RATES Please enter figure here Please enter figure here Please enter figure here Please enter figure here Please enter figure here Please enter figure here Please enter figure here Please enter figure herePlease enter figure here Please enter figure here Please enter figure herePlease enter figure here Please enter figure here Please enter figure here Please enter figure here