I'm developing a spreadsheet to reproduce the Net Adjusted Return calculated by LC but either i can't get the concepts right or the formula is wrong:
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In the numerator they're multiplying by Principali and also dividing by Principali, ain't that redundant?
Also, what exactly is Principali? Let's say i have a zero coupon loan of $ 1000 to be paid in 10 installments, that means my Principal1 = 900, Principal2 = 800 ,..., Principal9 = 100 and Principal10 = 0?
Again, Principal10 equals to $0 and the numerator would become 0 right after the last installment is paid, does that makes any sense?)
In the numerator they're multiplying by Principali and also dividing by Principali, ain't that redundant?
Also, what exactly is Principali? Let's say i have a zero coupon loan of $ 1000 to be paid in 10 installments, that means my Principal1 = 900, Principal2 = 800 ,..., Principal9 = 100 and Principal10 = 0?
Again, Principal10 equals to $0 and the numerator would become 0 right after the last installment is paid, does that makes any sense?)