(11C) Loan Repayments

11132018, 01:37 PM
Post: #1




(11C) Loan Repayments
Program to calculate for "Loan Repayments"
n = number of payments i = Interest Rate in Percent PMT = Payment PV = Principal Formula Used: Procedure: Interest Rate [A] Principal [R/S] Payment [R/S] > Answer Example: This Example is from HP38C Owner's Handbook. Bill Buckskin wished to invest in a $22,000 log carbin to keep the rain off. A local merchant has offered to loan Bill the $22,000 at 10.5% interest. Making $200 monthly payments, how long will it take Bill to repay his mortgage? 10.5 [A] 22000 [R/S] 200 [R/S] > 376.89 Answer: 376.89 // Months 12 ÷ Answer 31.41 // Years Program: Code:
Gamo 

11132018, 03:09 PM
Post: #2




RE: (11C) Loan Repayments
(11132018 01:37 PM)Gamo Wrote: This Example is from HP38C Owner's Handbook. You might want to rearrange the order, to get more information from same calculation. 22000 [Enter] 200 / > 110.00, number of payments if no interest 10.5 [R/S] > 376.89, effect of 10.5% interest. 277 payments (23 years) just for interest ! 

11142018, 05:20 AM
Post: #3




RE: (11C) Loan Repayments
Thanks Albert Chan
Very good touch up. Gamo 

11172018, 06:03 PM
(This post was last modified: 11172018 06:16 PM by Dieter.)
Post: #4




RE: (11C) Loan Repayments
(11132018 01:37 PM)Gamo Wrote: Formula Used: No, that's not the formula. The "1+i" part must be a subscript after the log, indicating that the base 1+i logarithm of the bracketed term is calculated. But the program uses a correct formula. I'd write it this way: \[\begin{align} n~&=~log_{~1+i}~(1\frac{i \cdot PV}{PMT}) \\ \\ &=~ \frac{ln(1\frac{i \cdot PV}{PMT})}{ln(1+~i)} \end{align}\] This is what the program correctly implements. Assuming that the user enters the monthly payment and the annual interest rate. Dieter 

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