(11C) Loan Repayments
11-13-2018, 01:37 PM
Post: #1
 Gamo Senior Member Posts: 475 Joined: Dec 2016
(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 HP-38C 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:  LBL A EEX 2 ÷ 12 ÷ STO 0 R/S x R/S ÷ 1 X<>Y - 1/x LN RCL 0 1 + LN ÷ RTN Gamo 11-13-2018, 03:09 PM Post: #2  Albert Chan Senior Member Posts: 627 Joined: Jul 2018 RE: (11C) Loan Repayments (11-13-2018 01:37 PM)Gamo Wrote: This Example is from HP-38C 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

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 !
11-14-2018, 05:20 AM
Post: #3
 Gamo Senior Member Posts: 475 Joined: Dec 2016
RE: (11C) Loan Repayments
Thanks Albert Chan
Very good touch up.

Gamo
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: 2,398 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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