TVM solve for interest rate, revisited
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06-21-2024, 03:11 PM
(This post was last modified: 06-21-2024 08:42 PM by Albert Chan.)
Post: #50
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RE: TVM solve for interest rate, revisited
Last example, if we set P=0.01, big edge = 100%, center about 50%
Both guesses will cause S=EXPM1(LOGP1(I)*N) to overflow. This does not mean algorithm is wrong ... we just need a better FNF, for big rate. FNF=((P+F)/S+P)*I+M --> S=inf --> FNF=P*I+M < 40 S=EXPM1(LOGP1(I)*N) > 40 S=EXPM1(LOGP1(I)*N) @ IF S>9E499 THEN D=P @ FNF=D*I+M @ END >run B,N,P,M,F? 0,365*24*60,0.01,-0.01,5260.382426 Code: 49.9999049499 WRN L40:Overflow How do I remove WRN L40:Overflow? Is there exception handling (like Python), for HP71B? 100% rate? Yes! Every period, 1 penny loan doubled to 2, paid back 1 With exact 100% rate, we still owe 1 penny at the end (fv = -0.01) But we have credit balance instead --> rate i = 1 - ε, ε>0 Split loan Code: PV PMT FV #1: x=0 --> i = 1 #2: i=1 --> x = 5260.392426/(2^525600-1) ≈ 2^-525587.64 i = 0.01/(0.01+x) = 1/(1+100x) ≈ 1 - 100x ≈ 1 - 2^-525581 |
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