Monthly Payment = (rate + rate / ((1 + rate)^months) - 1 ) * principal Where rate = Annual Percentage Rate divided by 1200 For example, an 8 % annual rate becomes .0066666666666666...
Let's suppose we want to borrow $150,000 for 30 years at 8 per cent annual percentage rate. What is the monthly payment? 1) The rate would be .0066666666... 2) The months would be 12 × 30 = 360. 3) So the monthly Payment would be: .0066666666 / .0066666666 + ((1.0066666666 ^360)-1) × $150,000 4) The middle section of the equation is the most difficult to solve so we will calculate that first. (.0066666666) ÷ ((1.0066666666 ^360)-1) = (.0066666666) ÷ (10.935729397036 -1) = (.0066666666) ÷ 9.935729397036 = 0.0006709790897 5) "Plugging" this into the rest of the equation we have: (.0066666666 + 0.0006709790897) × $150,000 = (0.007337645756) × $150,000 = $ 1,100.65 http://www.1728.com/loanform.htm -------------- Ian Skinner Web Programmer BloodSource www.BloodSource.org Sacramento, CA "C code. C code run. Run code run. Please!" - Cynthia Dunning Confidentiality Notice: This message including any attachments is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender and delete any copies of this message. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Discover CFTicket - The leading ColdFusion Help Desk and Trouble Ticket application http://www.houseoffusion.com/banners/view.cfm?bannerid=48 Message: http://www.houseoffusion.com/lists.cfm/link=i:4:219484 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/4 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:4 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.4 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
