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September 14th, 2012, 03:13 AM   #1
Joined: Sep 2012

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Annuity loan

Hello, I've to make the following function:

Find the monthly payment for a 30-year loan of $30.000 with an annual interest rate of 5,5%. The function should start with:

Function monthlypayment = annuity (presentvalue, annual interest, years)

Keep those the following things in mind:
- the interest rate won't change
- the montly interest is 1/12 of the annual interest

The function should produce a monthly amount of money and has to be negative.

Calculate the monthly factor as follows:

a = 1 + (0,01*p/12)

p is the annual interest
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September 14th, 2012, 06:29 AM   #2
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From: Ottawa Ontario, Canada

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Re: Annuity loan

Well, all that rhetoric "seems" to be asking for the formula to calculate monthly payment:
P : payment (?)
A : amount borrowed (30000)
n : number of months (30 * 12)
i : interest per month (.055 / 12)

P = Ai / [1 - 1/(1 + i)^n]
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