The formula for effective maturity.
Suppose that an installment plan also shows additional borrowings of a debtor. That is, at some point in time (other than the inception date) the borrower is given a fixed amount for once or several times before the maturity.
To illustrate (assume that the inception date is the first day of 2023):
|Date||Payment/Loan||Payment/Loan Amount||Outstanding Balance|
In that case, should the additional loans be taken into account as negative cash flows while calculating the effective maturity of the loan? That is;