bwBASIC/BP100/DISCBAL.80

    TRUE INTEREST RATE ON DISCOUNTED LOAN                                       
                                                                                
MOST CONSUMER BANK LOANS ARE WHAT ARE CALLED 'DISCOUNT LOANS'.                  
IN A LOAN OF THIS TYPE THE FINANCE CHARGE IS PREPAID.                           
FOR EXAMPLE, THE BANK WILL GIVE YOU A LOAN WITH FACE VALUE                      
EQUAL TO A STATED AMOUNT(TOTAL OF REPAYMENTS) AND WILL THEN                     
DEDUCT THE INTEREST CHARGES FROM THE PROCEEDS OF THE LOAN.                      
THUS THE CONSUMER DOES NOT GET THE FACE VALUE, BUT SOME LOWER                   
AMOUNT. TO MAKE MATTERS WORSE CHARGES FOR ACCIDENT & HEALTH                     
INSURANCE,CREDIT LIFE INSURANCE, AND OFFICIAL FEES MAY BE                       
REQUIRED.THIS PROGRAM COMPUTES THE PROCEEDS AND THE EFFECTIVE                   
INTEREST RATE IN SUCH A CASE.                                                   
THE CHARGES SUCH AS A & H ARE CONSIDERED AND TEND TO RAISE                      
THE EFFECTIVE RATE.                                                             
                                                                                
PRESS ENTER TO BEGIN?                                                           
TOTAL REPAYMENTS OF LOAN       ? 250000                                         
TOTAL INTEREST PREPAID         ? 12500                                          
TOTAL A & H INSURANCE CHARGES  ? 876                                            
TOTAL CREDIT LIFE INS. CHARGES ? 321                                            
TOTAL OFFICIAL FEES CHARGES    ? 5678                                           
MONTHLY LOAN PAYMENT          ? 1275                                            
TOTAL NUMBER OF MONTHLY PMTS  ? 360                                             
                                                                                
PROCEEDS OF LOAN    $230625.00                                                  
ANNUAL EFFECTIVE INT. RATE          5.26%                                       
                                                                                
PRESS ENTER FOR MORE COMPUTATIONS? -1