US APR vs EU APR, and the Substitute Tax on Loan Effects on These Formulas
DOI:
https://doi.org/10.33423/jabe.v24i3.5192Keywords:
business, economics, (Italian) substitute tax, influence on loanable funds, IRR vs EU APRAbstract
This paper explores the theory, goals, outcomes and difficulties of consumer finance disclosure process, focusing mainly in the Substitute Tax (especially the Italian one) effects on EU APR vs US APR formula and the compound mechanism intrinsic subsistent in a constant mortgage for additional research and study, and a general technical analysis about IRR and EU/US APR relations.
In particular, this study demonstrates that the supposed equivalence of IRR formula with APR formula is definitively incorrect under many aspects and empiric chases, while the most used constant mortgage has a typical anatocism deriving from compound interest-quota in each installment.
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Published
2022-06-20
How to Cite
Monzeglio, O. (2022). US APR vs EU APR, and the Substitute Tax on Loan Effects on These Formulas. Journal of Applied Business and Economics, 24(3). https://doi.org/10.33423/jabe.v24i3.5192
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