RT info:eu-repo/semantics/article
T1 Loans Amortization with Payments Constant in Real Terms
A1 Cruz Rambaud, Salvador
A1 González Sánchez, José
A1 García Pérez, José
A2 Ediciones Universidad de Valladolid
K1 Economía política
K1 Economía de empresa
AB In this paper we present the so-called debts amortization with payments constant in real terms. In this kind of loan, the payments are increasing according to the Consumer Price Index (CPI). Thus, the borrower assigns the same proportion of his/her salary to the discharge of the loan, without reducing his/her purchasing power due to this increase, but with the advantage of a minor first payment for the total amortization of the principal over the agreed loan period. We will use capitalization or discount functions with the inflation implicit and we will study the inflation rate dependence on the interest rate; taking into account that there exists a strong correlation between both magnitudes, it is expected that the final loan duration is not widely modified with respect to the initially agreed one. This work presents the theoretical treatment and some practical applications of this new proposed financial product, especially, for mortgage amortization.
SN 0213-7569
YR 2008
FD 2008
LK http://uvadoc.uva.es/handle/10324/19813
UL http://uvadoc.uva.es/handle/10324/19813
LA spa
NO Anales de estudios económicos y empresariales, 2008, N.18, pags.173-189
DS UVaDOC
RD 23-dic-2024