Fun loan

Denis

Senior Member
Joined
Feb 17, 2004
Messages
1,437
I thought this was "INTERESTing".
You want to borrow $a, with monthly payment of $p, such
that you'll owe $f after making n payments, at monthly rate r%.
Example:
Code:
   MONTH    PAYMENT        INTEREST   BALANCE
     0                                3000.00
     1      -522.56         30.00     2507.44
     2      -522.56         25.07     2009.95
     3      -522.56         20.10     1507.49
     4      -522.56         15.07     1000.00
So, in example: a=3000, f=1000, p=522.56, n=4, r=.01

Devise a formula calculating p in terms of a, f, n, r
 

Denis

Senior Member
Joined
Feb 17, 2004
Messages
1,437
No takers?

My formula (in case I lose it!)
a = amount of loan
f = future amount of loan
n = number of monthly payments
r = monthly rate
p = payment amount

p = r[a * (1 + r)^n - f] / [(1 + r)^n - 1]

...anutter useless formula!!
 
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