Amortization Schedule is drawn with the parameters below:
Loan - 30000
Rate of Interest - 24% per annum
Loan is repayable over 52 weeks (7 day intervals) in Equated weekly instalments.
EWI using PMT method works out to 650.24 (=PMT(24%/52,52,,-30000))
Loan is disbursed on 1st Jan 2018 and first instalment is due on 8th January 2018 and <br>at 7 day intervals thereafter. Last EWI is due on 31st December 2018
The XIRR for the loan works out to 27.1383%
However, when 24% is converted to effective rate using the formula =EFFECT(24%,52), <br>one gets 27.05%
How does one explain the different between the Effective Weekly rate and the XIRR?