My Math Forum  

Go Back   My Math Forum > Science Forums > Economics

Economics Economics Forum - Financial Mathematics, Econometrics, Operations Research, Mathematical Finance, Computational Finance


Reply
 
LinkBack Thread Tools Display Modes
September 10th, 2011, 09:07 PM   #11
Global Moderator
 
CRGreathouse's Avatar
 
Joined: Nov 2006
From: UTC -5

Posts: 16,046
Thanks: 938

Math Focus: Number theory, computational mathematics, combinatorics, FOM, symbolic logic, TCS, algorithms
Re: Value of an annuity in any given month

Quote:
Originally Posted by Erimess
I still don't get the k - 1 thing. k in finance stands for interest rate, so that's like saying 9% - 1, or 9.38% - 1. Don't know where that fits in.
1, not 1%. If the interest rate was 9% the method I gave would yield 1.09 which should have 1 subtracted to give 0.09. I just didn't want you to confuse this with 1.09% which it isn't.

Of course the Excel way is easy too.
CRGreathouse is offline  
 
September 10th, 2011, 11:44 PM   #12
Senior Member
 
Joined: Apr 2011
From: USA

Posts: 782
Thanks: 1

Re: Value of an annuity in any given month

Quote:
Originally Posted by CRGreathouse

1, not 1%. If the interest rate was 9% the method I gave would yield 1.09 which should have 1 subtracted to give 0.09. I just didn't want you to confuse this with 1.09% which it isn't.
I wouldn't have cause k = interest, not interest + 1. :P (Of course, I don't about OP.)
Erimess is offline  
September 11th, 2011, 12:03 AM   #13
Senior Member
 
Joined: Apr 2011
From: USA

Posts: 782
Thanks: 1

Re: Value of an annuity in any given month

Well, personally, when I was speaking doing it in Excel, I wasn't talking about using functions anyway. I never did much like the TVM functions in there. I really had no clue how I would have done this, but I would have tried.

I think your knowledge of Excel exceeds mine (or at least is different than mine) - I've never heard of a floor formula and not quite following what you're doing. But I suspect putting together what we've discussed with equations combined with your Excel knowledge, you'll be fine. I'm sure my way would have been much more complicated.

Sometime I'll have to take a look at what you're doing there and look up all that then, else stuff. Sounds like a "nested if". There's probably been plenty of things I could have been utilizing that for. When I took the accounting-applied spreadsheet class, it was Lotus 123, the very first Windows version of it. In fact, we spent 3 weeks on the DOS version. (Which I still have... somewhere.) Things have changed.
Erimess is offline  
September 11th, 2011, 09:45 AM   #14
Global Moderator
 
CRGreathouse's Avatar
 
Joined: Nov 2006
From: UTC -5

Posts: 16,046
Thanks: 938

Math Focus: Number theory, computational mathematics, combinatorics, FOM, symbolic logic, TCS, algorithms
Re: Value of an annuity in any given month

Quote:
Originally Posted by Erimess
Quote:
Originally Posted by CRGreathouse

1, not 1%. If the interest rate was 9% the method I gave would yield 1.09 which should have 1 subtracted to give 0.09. I just didn't want you to confuse this with 1.09% which it isn't.
I wouldn't have cause k = interest, not interest + 1. :P (Of course, I don't about OP.)
The context for subtracting 1 was:
"If over 10 years you go from $P to $P * k, then the interest rate per ten-year period is k-1."

So if over ten years you went from $1000 to $2000 the interest rate over the ten-year period is not 2000/1000 = 2 but 2000/1000 - 1 = 2 - 1 = 100%.
CRGreathouse is offline  
September 11th, 2011, 09:48 AM   #15
Global Moderator
 
CRGreathouse's Avatar
 
Joined: Nov 2006
From: UTC -5

Posts: 16,046
Thanks: 938

Math Focus: Number theory, computational mathematics, combinatorics, FOM, symbolic logic, TCS, algorithms
Re: Value of an annuity in any given month

Quote:
Originally Posted by Erimess
Well, personally, when I was speaking doing it in Excel, I wasn't talking about using functions anyway. I never did much like the TVM functions in there.
As a non-accountant, the built-in finance functions scare the daylights out of me.
CRGreathouse is offline  
September 13th, 2011, 08:42 PM   #16
Senior Member
 
Joined: Apr 2011
From: USA

Posts: 782
Thanks: 1

Re: Value of an annuity in any given month

Quote:
Originally Posted by CRGreathouse
Quote:
Originally Posted by Erimess
Well, personally, when I was speaking doing it in Excel, I wasn't talking about using functions anyway. I never did much like the TVM functions in there.
As a non-accountant, the built-in finance functions scare the daylights out of me.
I am an accountant and I still don't like them - I never really quite know what they're up to. When I have a student who is required to use them, I do it first and then check it against my work.
Erimess is offline  
Reply

  My Math Forum > Science Forums > Economics

Tags
annuity, month



Search tags for this page
Click on a term to search for related topics.
Thread Tools
Display Modes


Similar Threads
Thread Thread Starter Forum Replies Last Post
Increasing Annuity Bom55 Algebra 2 April 10th, 2013 08:10 PM
Annuity loan Brandonlive Elementary Math 1 September 14th, 2012 06:29 AM
In a given month warqzaka Algebra 12 July 5th, 2011 09:47 AM
Question:Celebrity deaths during the month of their birthday alexis2 Advanced Statistics 0 November 20th, 2010 06:45 PM
Increasing Annuity Bom55 Calculus 0 December 31st, 1969 04:00 PM





Copyright © 2019 My Math Forum. All rights reserved.