how to calculate average loan period of a 5 year loan

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Jayant - 25 Mar 2008 12:03 GMT

Gentlemen,

Can any one tell, how to calculate average loan period of a 5 year loan, say
a US$5 million loan, payable in quarterly instalments at rate of 5% p.a..
The first in stalment starts at the end of 1st quarter.

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Ron Rosenfeld - 25 Mar 2008 12:28 GMT

>Gentlemen,
>
>Can any one tell, how to calculate average loan period of a 5 year loan, say
>a US$5 million loan, payable in quarterly instalments at rate of 5% p.a..
>The first in stalment starts at the end of 1st quarter.

In the US, loan period would usually refer to the length of the loan, or
perhaps the time between periods.

In either case, you have already defined those in your statement.

Perhaps you mean something else?
--ron

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joeu2004 - 26 Mar 2008 00:47 GMT

> Can any one tell, how to calculate average loan period of a
> 5 year loan, say a US$5 million loan, payable in quarterly
> instalments at rate of 5% p.a. The first in stalment starts
> at the end of 1st quarter.

I presume you mean the periodic payment.

=roundup(pmt(5%/4, 5*4, -5000000), 2)

Change the rounding as you see fit.

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