mathomatic/tests/finance.in

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; Combine 2 commonly used formulas to produce the mortgage payment formula.
; Here are 3 related financial formulas that can be "read" into Mathomatic.
set fixed ; Enable fixed-point money mode; rounds to the nearest cent.
; First, the variable definitions:
; pv = present value
; fv = future value (maturity value)
; interest_rate = interest rate per period (1 = 100%)
; n = number of periods
; Compound Interest Future Value Formula:
fv1 = pv*(1+interest_rate)^n
; Future Value Annuity Formula:
fv2 = payment*(((1+interest_rate)^n-1)/interest_rate)
; Next we will combine these to produce the standard annuity formula.
; Set equal, then solve and simplify:
fv1 = fv2
pause
eliminate all ; combine both formulas to produce the annuity formula:
solve verifiable pv ; solve for present value:
solve verifiable payment ; or solve for payment per period:
pause End of finance tutorial
; Remember we are still in fixed-point money mode,
; unless you typed "set no fixed".