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March 29th, 2014, 12:47 AM  #1 
Newbie Joined: Mar 2014 From: Romania Posts: 1 Thanks: 0  Finance formula
Hello, guys! I am struggling with some math formulas for a Visual FoxPro program i want to build. This is about a housing contract, made between the city hall local council and an individual. What i want to do is calculate the credit interest rate, having a determined period of time (say 1020 years). Here's the formula i was thinking of, but it doesn't calculate correctly: (c*d)/((p*(1(1+d/p))))^(n*p) c=credit d=interest rate n=number of years p=period(12 months) Can you help me, please? Has anyone had a similar problem? Thanks in advance! 
March 30th, 2014, 11:34 AM  #2  
Math Team Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 14,412 Thanks: 1024  Quote:
m = (c*d)/((p*(1(1+d/p))))^(n*p) c = credit is ambiguous: should be c = amount borrowed However, what you show is wrong; where did you get that? Should be: m = [c * d/p] / [1  (1 + d/p)^(n*p)] As example: c=1000, d=.12, p=12, n=3 ; then: m = [1000 * .12/12] / [1  (1 + .12/12)^(3*12) m = 33.21 (rounded) So borrowing \$1000 over 36 months at annual rate of 12% compounded monthly requires monthly payment of $33.21 BUT: if m, c, n and p are the givens, and you want to calculate the interest rate d, then it CANNOT be done directly; numeric methods are required. Here you go; go find out: numerical methods  Google Search Last edited by MarkFL; March 31st, 2014 at 08:48 AM. Reason: Precede dollar sign with backslash  
March 31st, 2014, 04:10 AM  #3 
Math Team Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 14,412 Thanks: 1024  Hmmmm.....
Hmmm....that funny looking line (how did that happen?!) in my post above is: "So borrowing $1000 over 36 months at annual rate of 12 percent compounded monthly requires monthly payment of $33.21" NOTE to Duc: has to change "%" to "percent" to print properly.... Last edited by Denis; March 31st, 2014 at 04:13 AM. 
March 31st, 2014, 05:37 AM  #4 
Global Moderator Joined: Nov 2006 From: UTC 5 Posts: 16,046 Thanks: 938 Math Focus: Number theory, computational mathematics, combinatorics, FOM, symbolic logic, TCS, algorithms  The dollar signs are converting the content between them into TeX. As a quick workaround replace a single dollar sign with $\$\backslash\$\$$.

March 31st, 2014, 08:49 AM  #5 
Senior Member Joined: Jul 2010 From: St. Augustine, FL., U.S.A.'s oldest city Posts: 12,211 Thanks: 521 Math Focus: Calculus/ODEs  I edited your post to precede the dollar sign with a backslash which also works. 

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