160 Appendix A: Tables and Reference Information
where: iƒ0
where: i=0
where: iƒ0
where: i=0
where: iƒ0
where: i=0
where: iƒ0
where: i=0
Amortization
If computing bal(), pmt2 = npmt
Let bal(0) = RND(PV)
Iterate from m = 1 to pmt2
N–PV FV+()PMT÷=
PMT –i
Gi
----- PV PV FV+
1i+()
N1–
----------------------------+×=
P
MT –PV FV+()
N
÷=
PV PMT Gi
×
i
------------------------ FV–1
1i+()
N
-------------------PMT Gi
×
i
------------------------–×=
PV –FV PMT N×+()=
FV PMT Gi
×
i
------------------------ 1 i+()
N
–PV PMT Gi
×
i
------------------------+
×=
FV –PV PMT N×+()=
ImRND RND12 –ibalm1–()×()[]=
bal m() bal m 1–()Im
–RND PMT()+=