From yearly to monthly interest rate
Cynthia's parents want to invest in real estate for their daughter and will borrow a capital of 125,000 EUR to finance an apartment. A local bank provides mortgage loans at a yearly interest rate of 3.04%. The parents want to pay back the loan with fixed monthly payments over the next 20 years.
Can you derive how high these monthly payments will be?
In this first exercise you will focus on the transition from yearly to monthly interest rate.
本练习是课程的一部分
Life Insurance Products Valuation in R
练习说明
- Define
number_paymentsas the number of payments to be made. The loan will be paid back using monthly mortgage payments over a time period of 20 years. - Set
iequal to the yearly nominal interest rate of 3.04%, hence 0.0304. - Calculate the monthly interest rate
monthly_interestfrom the yearly interest ratei.
交互式实操练习
通过完成这段示例代码来试试这个练习。
# Define the number of payments
number_payments <- ___
# Define the yearly interest rate
i <- ___
# Calculate the monthly interest rate
monthly_interest <- (___) ^ (___) - 1
monthly_interest