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%CO:A,12,72%PROGRAMME "FINANCE" 15.2.1989
This programme handles the usual financial calculations.
A.%H1%Compound interest%H1%
Four values enter into the calculation:
i interest during a period
n number of periods
P present worth
F future worth
They are linked by the formula F = P(1+i)%H6%n%H6%
Any value can be computed from the other 3 by setting it equal to zero
in the input.
B.%H1%Annuity calculations%H1%
Five values enter into the calculation:
i interest rate over a period
n number of periods
P present total worth at the beginning of the first period
F final total worth at the end of the last period
a annuity paid in each period
It can be specified whether the annuity is paid at the beginning or at
the end of each period.
For annuity payment at the end of each period, these values are linked
by the following two formulas:
F=%H1%a%H1%[(1+i)%H6%n%H6%-1] P=%H1%a%H1%[1-1/(1+i)%H6%n%H6%]
i i
With the help of these formulas (and those derived therefrom for
annuity payment at beginning of period), the programme computes any two
values (set to zero in the input) from the other three.
C.%H1%Notes%H1%
Calculations can be performed for any time period: year, quarter or
month. In first approximation, for a yearly rate of 6%PC%, the monthly
rate is 0.5%PC% and the quarterly 1.5%PC%. More exactly, the corresponding
rate should be computed from the formula
i'= (1+i)%H6%1/m%H6%-1,
where m is the number of periods in a year, e.g. 4 quarters and 12
months. The above rates become then 0.487%PC% and 1.467%PC%.
Author: Bruno Pellaud
Santisstrasse 22
8123 Ebmatingen, Switzerland
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