Financial Calculations Worksheet Page 6
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
3019-3 Compound Interest Calculations
This calculator uses the following standard formulas to calculate compound
interest.
u u u u u Formula I
(1+ i × S)[(1+ i)
n
–1]
1
I %
PV+PMT ×
= 0
i =
+ FV
n
n
i(1+ i)
(1+ i)
100
Here:
α
β
PV
PV= –(PMT ×
+ FV ×
: present value
)
FV
: future value
PMT
: payment
α
PMT × + PV
n
:
number of compound periods
FV= –
β
I
%
: annual interest rate
β
i
PV + FV ×
is calculated using Newton’s Method.
PMT= –
α
S
= 1 assumed for beginning of term
S
= 0 assumed for end of term
{
}
(1 + i S ) PMT–FVi
log
(1 + i S ) PMT+PVi
n =
log(1 + i)
(1 + i × S)[(1 + i)
n
–1]
α
=
n
i(1 + i)
1
β
=
n
(1 + i)
F
i
(
) = Formula I
[
]
–n
(1 + i S)[1– (1 + i)
]
PMT
]+S [1–(1 + i)
]
–n–1
–n
–
+ (1 + i S)[n(1 + i)
F(i)'=
i
i
–n–1
–nFV (1 + i)
u u u u u Formula II (I% = 0)
PV + PMT × n + FV = 0
Here:
PV = – (PMT × n + FV )
FV = – (PMT × n + PV )
326
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Education