Financial calculation

[saher edris]

Suppose i'm processing the following lease transaction with the following input parameters :
 
lease created date = Sep., 13 th 2004
 
first payment date  = Nov., 30 th 2004
 
* grace period is considered " accounted for " since lease creation date up to first payment date .
 
p.v. " lease amount " =  6725 $
 
no. of payments        = 72   months
 
payment amount    = 118       
 
f.v.  "lease amount + interest" = 10436 $
 
balloon amout = 1440
 
no. of balloon payments = 6
 
balloon payment = 240
 
balloon first payment date = Oct.,30 th 2005
 
CF = PF = monthly
 
My question is .... in trying to find the value of  the " nominal rate "  ...does the existance of 
 
balloon payments affect the calculation of the " nominal rate "  ? and if it does please explain ?
 
 
P.S. this is an actual transaction with actual parameters
 
 
Regards
 
Saher Edris

		
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