absolute payment speed formula speed, payment, absolute

BC_MBA_student

do we need to know this? it's not listed in the LOS in R58. any thoughts? thx.

Otabek

well i know it as the prepayment based on the ORIGINAL loan amount and the SMM based on the remaining balance. so i know the difference between the two, but i don't bother knowing how to calculate ABS exactly.

this was my feeling... is it really necessary to calc it or just know its difference from SMM.

ningning1984

the LOS says describe, not calculate so......its up to you haha.

Its not too hard of a formula, SMM = ABS/(1-ABS(Months-1))

FinancialAnaly

How do you know it's not needed? It's in the book. The LOS's don't tell you everything.



Edited 1 time(s). Last edit at Thursday, May 26, 2011 at 01:32PM by Dreary.

Analyze_This

no not needed