Analysis of Soft Loans Repayable by Variable Flows of Installments
The article investigates the soft loans repayable by annual installments of varying arithmetic progression. The formulae for calculating the notional loss of the lender (conditional grants of the debtor) are given. It is shown that the conditional loss of the debtor decreases linearly with increasing of the first payment for a fixed value of increase of payments for the year. If the first payment is fixed, the notional loss of creditor increases linearly with absolute increase in payments for the year. These formulae enable a creditor (debtor) to choose the most favorable to them form of a soft loan repayment.