I need help with an interest rate calculation.

Given:

P = Principal

i = APR

n = frequency of payments/compounding per year

Y = number of years to repay

B = Final Balloon Payment

how do I calculate the per period payment?

I need help with an interest rate calculation.

Given:

P = Principal

i = APR

n = frequency of payments/compounding per year

Y = number of years to repay

B = Final Balloon Payment

how do I calculate the per period payment?

“Bill Caroselli (Q-TPS)” <QTPS@earthlink.net> wrote:

I need help with an interest rate calculation.

Given:

P = Principal

i = APR

n = frequency of payments/compounding per year

Y = number of years to repay

B = Final Balloon Paymenthow do I calculate the per period payment?

Here’s my list of handy formulas, not sure if the one you want is in there somewhere

Financial mathematics:

Future worth of a present amount:

(F/P, i, N) = (1 + i) ^ n = e ^ (j * n)

Present worth of a future amount:

(P/F, i, N) = 1 / ((1 + i) ^ n) = e ^ (-j * n)

Future worth of an annuity:

(F/A, i, N) = ((1 + i) ^ n - 1) / i = (e ^ j * n - 1) / (e ^ j - 1)

Annuity for a future amount:

(A/F, i, N) = i / ((1 + i) ^ n - 1) = (e ^ j - 1) / (e ^ (j * n) - 1)

Present worth of an annuity:

(P/A, i, N) = ((1 + i) ^ n - 1) / (i * (1 + i) ^ n) = (e ^ (j * n) - 1) / ((e ^ j - 1) * e ^ (j * n))

Annuity from a present amount:

(A/P, i, N) = (i * (1 + i) ^ n) / ((1 + i) ^ n) - 1) = ((e ^ j - 1) * e ^ (j * n)) / (e ^ (j * n) - 1)

Future worth of a continuous annuity:

(F/A’, j, N) = ((1 + i) ^ n - 1) / j = (e ^ (j * n) - 1) / j

Present worth of a continuous annuity:

(P/A’, j, N) = ((1 + i) ^ n - 1) / (j * (1 + i) ^ n) = (e ^ (j * n) - 1) / (j * e ^ (j * n))

Continuous annuity from a present amount:

(A’/P, j, N) = (j * (1 + i) ^ n) / ((1 + i ^ n - 1) = (j * e ^ (j * n)) / (e ^ (j * n) - 1)

Continuous annuity for a future amount:

(A’/F, j, N) = j / ((1 + i) ^ n - 1) = j / (e ^ (j * n) - 1)

–

Robert Krten, PARSE Software Devices +1 613 599 8316.

Realtime Systems Architecture, Books, Video-based and Instructor-led

Training and Consulting at www.parse.com.

Email my initials at parse dot com.

Good! I hate talking about work at the cafe!

“Bill Caroselli (Q-TPS)” wrote:

I need help with an interest rate calculation.

P = Principal

i = APR

n = frequency of payments/compounding per year

Y = number of years to repay

B = Final Balloon Paymenthow do I calculate the per period payment?

Yawn. I call my accountant…

Seriously, it looks like an interesting question. I bet it isn’t in any

financial calculator, nor in Rob’s handy list, either. It’s that

arbitrary Final Balloon Payment; if it was zero one of the standard

formulas would handle it. Hmmm, time for more coffee…

Phil

“Phil Olynyk” <pholynyk@rogers.com> wrote in message

news:3CB2EA0E.10765F15@rogers.com…

Good! I hate talking about work at the cafe!

Seriously, it looks like an interesting question. I bet it isn’t in any

financial calculator, nor in Rob’s handy list, either. It’s that

arbitrary Final Balloon Payment; if it was zero one of the standard

formulas would handle it. Hmmm, time for more coffee…Phil

I mean I know how to do an amortization table. I can use trial and error

until I get to the correct cent. But I know that there is some crazy log

formula that will do it in one shot.

Bill Caroselli (Q-TPS) wrote:

“Phil Olynyk” <> pholynyk@rogers.com> > wrote in message

news:> 3CB2EA0E.10765F15@rogers.com> …Good! I hate talking about work at the cafe!

Seriously, it looks like an interesting question. I bet it isn’t in any

financial calculator, nor in Rob’s handy list, either. It’s that

arbitrary Final Balloon Payment; if it was zero one of the standard

formulas would handle it. Hmmm, time for more coffee…Phil

I mean I know how to do an amortization table. I can use trial and error

until I get to the correct cent. But I know that there is some crazy log

formula that will do it in one shot.How about a root solver? Netwon’s methos works fine on this equation.

“David Hawley” <david.l.hawley@computer.org> wrote in message

news:3CB50851.2000304@computer.org…

How about a root solver? Netwon’s methos works fine on this equation.

Newton? That guy got hit on the head by too many apples! (I think they

were the 2E’s)

For Sale:

Engineering Economy

William G. Sullivan

11th Edition

$99 new at Amazon, $45 new from me.

Has all the good formulas with their backgrounders.

I love Information Technology Science; you know: operating systems,

integrated circuit design, crypto, engineering economy…

Leon Woestenberg.

P.S. Just kidding guys - (but the book is for sale

“Bill Caroselli (Q-TPS)” <QTPS@EarthLink.net> wrote in message

news:a8srlj$6of$1@inn.qnx.com…

I need help with an interest rate calculation.

P = Principal

i = APR

n = frequency of payments/compounding per year

Y = number of years to repay

B = Final Balloon Paymenthow do I calculate the per period payment?