Expressing the interest rate as a decimal fraction, Mathematics

Total Contribution per Year for next 10yeras =$1000+$800 =$1800

So Total Future fund VauleĀ  =$1800*(1+1.073+power(1.073,2)+ power(1.073,2)+ power(1.073,3)+ power(1.073,4)+ power(1.073,5)+ power(1.073,6)+ power(1.073,7)+ power(1.073,8)+ power(1.073,9)+ power(1.073,10)) =30938.6145

So The Vaule of Corpus =$30938.6145 =PV

Substituting pv (present value for k and PMT (payment) for a in the equation 12 results in

PV =PMT [1-(1+i)-n]/i

K = The original loan or investment amount.

n = The number of compounding periods constituting the duration of the investment or loan.

K *Rn = The future value (FV) of K after n compounding periods (years).

i =The interest rate per compounding period.

a =The annuity

R=(1+i/100)

Expressing the interest rate as a decimal fraction instead of as a percentage value results in

R = (1+ i )

PV =5000*((1-(1+8.7)-30)/0.087) =5000*((1-power((1+0.087),-30)/8.7) =52766.21235

So Increase installmentsĀ  = (PV/(1+1.073+power(1.073,2)+ power(1.073,2)+ power(1.073,3)+ power(1.073,4)+ power(1.073,5)+ power(1.073,6)+ power(1.073,7)+ power(1.073,8)+ power(1.073,9)+ power(1.073,10))) =(52766.21235//(1+1.073+power(1.073,2)+ power(1.073,2)+ power(1.073,3)+ power(1.073,4)+ power(1.073,5)+ power(1.073,6)+ power(1.073,7)+ power(1.073,8)+ power(1.073,9)+ power(1.073,10)))

New installment =$3069.923582

Posted Date: 3/13/2013 2:56:48 AM | Location : United States







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