INT’ ＝ BAL x i (INT’ is rounded to the current display setting; INT’ ＝ 0 for period 0 in Begin mode)
INT ＝ INT’ (with sign of PMT ) PRIN ＝ PMT + INT’
PRIN ＝ PMT + INT’
BALnew ＝ BALold + PRIN ∑INTnew ＝ ∑INT old + INT ∑PRINnew ＝ ∑PRIN old + PRIN
Interest Rate Conversions
Periodic compounding
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EFF% ＝ 1 | + |
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| 100 ⋅ P |
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Continuous compounding
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EFF% | ＝ e | 100 | − | 1 | ⋅ 100 |
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j ＝ the group number of the cash flow. CFj ＝ amount of the cash flow for group j.
nj ＝ #TIMES the cash flow occurs for group j.
k ＝ the group number of the last group of cash flows.
Nj ＝ ∑ nl = total number of cash flows prior to group j
1≤ l ＜j
k
NPV ＝ CF0 + ∑(CFj x USPV (i% : nj ) x SPPV (i% : Nj ))
j=1
When NPV = 0, the solution for i% is IRR%.
248 B: More About Calculations
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