cft {tvm}

Calculates the Total Financial Cost (CFT)

Description

This is the IRR of the loan's cashflow, after adding all the extra costs

Usage

cft(amt, maturity, rate, up_fee = 0, per_fee = 0)

Arguments

amt

The amount of the loan

maturity

The maturity of the loan

rate

The loan rate, in effective rate

up_fee

The fee that the loan taker pays upfront

per_fee

The fee that the loan payer pays every period

Details

It is assumed that the loan has monthly payments The CFT is returned as an effective rate of periodicity equal to that of the maturity and the rate The interest is calculated over amt + fee

Examples

cft(amt = 100, maturity = 10, rate = 0.05, up_fee = 1, per_fee = 0.1)