ABSTRACT
Formato derived a useful formula in which the amount of periodic payment was equal in a skip payment loan with arbitrary skips. Formato's model was improved by Moon in a geometric-gradient series. Eroglu and Karaoz rederived Formato's result to the case where periodic payments occur in a linear-gradient series. In this study, general formulas are derived for payment loan models in which a certain number of periodic payment amounts are determined by the customer at the beginning of the loan term and the other payments are rhythmic skips with split constant instead of random skips.
Acknowledgments
The authors thank the editor and the anonymous reviewers for their valuable suggestions and helpful comments on earlier versions of this article.
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Abdullah Eroglu
Abdullah Eroglu is a professor in the Department of Business Administration, Suleyman Demirel University, Turkey. He received his B.S. degree from Cukurova University, Turkey, and M.Sc. and Ph.D degrees in ındustrial engineering from Gazi University, Turkey.
Harun Ozturk
Harun Ozturk is a research assistant and a D.B.A. student in the Department of Business Administration, Suleyman Demirel University, Turkey. He received his B.S. degree in mathematics from Cumhuriyet University, Turkey, and M.B.A. degree in business administration from Suleyman Demirel University.