At present, the installment financing business is quite popular, and both units and individuals may be exposed to such business, such as mortgage loan when buying a house, installment purchase of large commodities, etc.However, because many people do not have the concept of time value of capital, the capital cost they calculated is often very different from the actual situation.
A factory (hereinafter referred to as Unit A) signed a financing agreement with a financing company (hereinafter referred to as Unit B) in order to raise a fund.The agreement stipulates that Party A borrows 10 million yuan from Party B, and Party A needs to pay a service fee of 3% of the loan amount of 300000 yuan and a 15% deposit of 1.5 million yuan. The deposit and service fee are deducted in advance when Party B transfers the loan, and the actual amount transferred is 8.2 million yuan.After that, Party A shall pay 250000 yuan of principal and interest to Party B at the end of each month. The repayment period is 48 months and the total repayment amount is 12 million yuan.In addition, according to the agreement, the deposit is the guarantee for the performance of the contract, which can be used to offset the repayment of Unit A in the next 6 months.
The leaders of Unit A believe that the total amount of funds raised by the unit is 10 million yuan, and the total amount of principal and interest payment is 12 million yuan. Even if the service fee of 3% is added, the total amount of principal and interest payment is only 12.3 million yuan, the total amount of interest is 2.3 million yuan, the annual interest rate is 575000 yuan, and the annual interest rate is 5.75%.
The financial staff of Unit A believes that the total amount of funds actually raised by the Company is 8.2 million yuan, the total amount of principal and interest repayment is 10.5 million yuan (250000 yuan × 42 months), the total amount of interest is 2.3 million yuan (10.5 million yuan 8.2 million yuan), the annual interest is 657100 yuan (2.3 million yuan ÷ 3.5 years), and the annual interest rate is 8.01% (657100 yuan ÷ 8.2 million yuan × 100%).
In fact, the capital cost calculated by the leaders and financial personnel of the unit is wrong.Although the agreement stipulates that the total amount of borrowings is 10 million yuan, the total amount of funds actually received by Unit A is only 8.2 million yuan.Therefore, the leader of the unit believes that it is wrong to raise 10 million yuan in total.Although the financial staff of the unit saw this, he did not notice the time of repayment.Although the total repayment of principal and interest during the whole repayment period is 10.5 million yuan, the repayment time is not 3.5 years later, but monthly installment payment. The monthly payment includes interest and principal. Therefore, the fund actually used by the unit in 3.5 years is not 8.2 million yuan at all, but a gradually decreasing amount on the basis of 8.2 million yuan.
The author believes that the capital cost of this fund should be calculated according to the present value of the annuity.The total present value of this example is 8.2 million yuan, the payment period is 42 months, and the amount of each payment is 250000 yuan.There are two calculation methods, one is manual calculation, the other is computer calculation.
Manual calculation method: set monthCapital cost rateIs i, according to the calculation formula of the present value of the annuity, 25 × 1 - (1+i) 42/i=820.
First, assume a value for i, and carry this value into the left term of the formula for calculation. If the calculation result is greater than the right term, increase the value of i, and then calculate;If the calculation result is smaller than the right term, reduce the value of i.The calculation is repeated until the value of i makes the calculation result of the left term equal to or close to the right term.At this time, the value of i is the monthly capital cost rate.
With the help of computer calculation method: use RATE function in Excel software for calculation.RATE function is a function specially used to calculate the actual capital cost in the case of installment payment.After introducing the RATE function, fill in the total repayment period in the Nper item, which is 42 (months) in this example;Fill in the total amount of each installment in Pmt, which is 250 thousand yuan in this example;Fill in the total present value in Pv, which is 8.2 million yuan in this example;Enter the cash balance that can be obtained after the last payment in Fv, which is 0 in this example;Fill in 1 or 0 in the Type item. If the payment is at the beginning of the month, this item is 1. If the payment is at the end of the month, this item is 0.After the above items are filled in, the calculation results will appear.With the help of RATE function in computer Excel, the month of this exampleCapital cost rateIt is 1.2062%, and the annual capital cost rate is 14.4744% (1.2062% × 12).
It can be seen from the calculation results that the capital cost thought by the unit leaders and financial personnel in the case is far from the actual capital cost.Therefore, it is suggested that units and individuals should listen to the opinions of experts when using installment financing.
Not equal to installment
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The bank's installment repayment is a staged repayment business launched to avoid the penalty interest based on the total consumption limit when the customer is unable to repay the credit card overdraft amount at one time.
Compared with installment payment business, installment payment is different in application procedures and application scope.For example, if Xiao Li wants to buy a mobile phone with the installment business, he should go to the shop that cooperates with the credit card.For the installment business, it is not necessary to specify the consumption place and consumption category. If the customer realizes that he/she cannot repay in full on schedule after swiping the card, he/she can call to apply.However, it should be noted that the service charge for installment payment is high, generally higher than that of the same periodCommercial loan interest rate。
Reminder: The shorter the installment period, the lower the fee
Keeping good repayment habits is the basic requirement for improving reputation!
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↑ Zhang Zongqian, Wu Xishun. What is the cost of installment repaymentWealth management - 2007 Phase 6 ↑ Detailed account of installment repayment cannot be trapped. Southern Metropolis Daily
