(11C) Loan Repayments
11-17-2018, 06:03 PM (This post was last modified: 11-17-2018 06:16 PM by Dieter.)
Post: #4
 Dieter Senior Member Posts: 2,397 Joined: Dec 2013
RE: (11C) Loan Repayments
(11-13-2018 01:37 PM)Gamo Wrote:  Formula Used:

image: "n = log 1 + i · [1 / (1 – PV · i / PMT)]"

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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 Messages In This Thread (11C) Loan Repayments - Gamo - 11-13-2018, 01:37 PM RE: (11C) Loan Repayments - Albert Chan - 11-13-2018, 03:09 PM RE: (11C) Loan Repayments - Gamo - 11-14-2018, 05:20 AM RE: (11C) Loan Repayments - Dieter - 11-17-2018 06:03 PM

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