FV
–
PV PMT N×+()=
I
m
RND RND12
–
i bal m 1–()×()[]=
bal m() bal m 1–()I
m
– RND PMT()+=
⎩
⎨
⎧
bal( ) bal pmt2()=
ΣPrn( ) bal pmt2()bal pmt1()–=
ΣInt( ) pmt2 pmt1–1+()RND PMT()×ΣPrn( )–=
npv( ) CF
0
CF
j
1 i+()
-
S
j
1–
11i+()
-
n
j
–()
i
-----------------------------------
j 1=
N
∑
+=
Appendix B: Reference Information 389
where:
i ƒ 0
where: i = 0
Amortization
If computing
bal(), pmt2 = npmt
Let bal(0) = RND(PV)
Iterate from
m = 1 to pmt2
then:
Balance, principal, and interest are dependent on the values of PMT, PV, æ, and pmt1 and pmt2.
Cash Flow
where: S
j
n
i
i 1=
j
∑
j 1≥
0 j 0=
⎩
⎪
⎪
⎨
⎪
⎪
⎧
=
Net present value is dependent on the values of the initial cash flow (CF
0
), subsequent cash flows
(
CFj), frequency of each cash flow (nj), and the specified interest rate (i).
irr() = 100 × i, where i satisfies npv() = 0
where:
RND
= round the display to the number of decimal
places selected
RND12
= round to 12 decimal places
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