KAlgebra/Credit payment: Difference between revisions
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r = annual nominal interest rate (as a decimal) | r = annual nominal interest rate (as a decimal) | ||
n = number of times the interest is compounded per year | n = number of times the interest is compounded per year(12 times) | ||
t = number of years | t = number of years | ||
Revision as of 21:17, 18 December 2010
Formula for calculating compound interest:
Where,
A = final amount
P = principal amount (initial investment)
r = annual nominal interest rate (as a decimal)
n = number of times the interest is compounded per year(12 times)
t = number of years
Write all these functions in Console Mode
1.This Function calculates the monthly interest rate by given yearly interest rate.
monthlyInterestRate:= yearlyInterestRate-> yearlyInterestRate/1200
2.This function calculates the monthly payment
- mir=monthlyInterestRate
monthlyPayment:=(sum, mir, months)->(sum*(1+mir)^months*mir)/((1+mir)^months-1)
3.This Function calculates the whole amount you have to return to the bank
amount:=(monthlyPayment,months)->monthlyPayment*months
