Financial calculation question: variable interest rate
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07-06-2015, 02:37 PM
(This post was last modified: 07-06-2015 05:20 PM by Dave Britten.)
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RE: Financial calculation question: variable interest rate
(07-05-2015 10:16 AM)fhub Wrote:(07-04-2015 09:55 PM)Dave Britten Wrote: Suppose I open a home equity line of credit that has a 1.99% introductory rate for 6 months. Then I immediately finance something for, say $4000. After 6 months, the interest rate increases to 2.99%. How would I go about calculating 12 equal payments to have the financed amount fully paid off at the end of 12 months? Excellent, thanks. Now, if I wanted to generalize this a bit before entering it into my 17BII, would this be the correct way to have optional begin/end-period payments, and tack on FV (in case it needs to be non-zero)? (B = 1 for beginning, 0 for ending) PV*(1+i1)^n1*(1+i2)^n2 + PMT*((1+i1)^n1-1)/i1*(1+B*i1)*(1+i2)^n2 + PMT*((1+i2)^n2-1)/i2*(1+B*i2) + FV = 0 EDIT: That seems to be working, based on the results I'm getting and then comparing to the built-in TVM solver (doing it piecewise, i.e. solve for FV with n=6, change the sign and stuff it back in PV, update the interest rate, and solve for FV again). Error is a good 8 decimal places out, and it's possible that's just because I'm running the solver in Fix 8 mode. Corrections still welcome if anybody finds any problems with it. |
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Messages In This Thread |
Financial calculation question: variable interest rate - Dave Britten - 07-04-2015, 09:55 PM
RE: Financial calculation question: variable interest rate - fhub - 07-05-2015, 10:16 AM
RE: Financial calculation question: variable interest rate - Dave Britten - 07-06-2015 02:37 PM
RE: Financial calculation question: variable interest rate - fhub - 07-07-2015, 08:36 AM
RE: Financial calculation question: variable interest rate - Dave Britten - 07-07-2015, 11:12 AM
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