Conference Title: International Conference in Business,Technology and Innovation 2013
Conference Title: UBT Publications
Contributing Editos: Prof. Albert Qarri, Prof. Ibrahim Krasniqi, Krenare Pireva, Evelina Bazini, Nita Abrashi
Co-Organizers: Ardian Emini, Vlora Aliu, Betim Gashi, Xhemajl Mehmeti, Kushtrim Dragusha, Murat Retkoceri, Kaltrina Bunjaku, Leonita Braha
Start Date: 2013-11-01
End Date: 2013-11-02
Venue, City, Country: : Hotel Bleart , Durres , Albania

Paper Title

Effective Interest Rate of Different Loans


Ramadan Limani


In this paper several types of loans offered by banks and other micro financial institutions are shown, and their respective effective interest rates are calculated. The parameters that affect the effective interest rate, which is the only real parameter that show whether a loan is affordable or not are considered. Some examples of loans without a fee, and those with fees are given and the effective interest rate for those loans is calculated. The mathematical technique for calculation of the effective interest rate is shown, and the financial consultant CASIO FC 100V is used to mathematically calculate the effective interest rate.


nominal interest rate, periodical interest rate, effective interest rate, fee