> On Sun, Jan 15, 2012 at 6:19 PM, <[email protected]> wrote: >> That said, there are subtle differences between the two, but beyond that >> there are different expectations of what precision means. For instance, >> if >> you were to write a amortization calculator, you might be tempted to >> carry >> fractional value across calculation periods. In a financial environment >> this is not done, nothing is carried across transactions. > > So, if I ever implement amortizations (I don't even know what that > means, but this thread has given some hints and they are tantalizing) > how should I implement them? Calculate one year at a time, then round > and calculate again, until the thing expires/matures?
Well, conceptually, amortization is the payment schedule of a loan. It is calculated as the interest on the principal for a given period. Given a fixed payment amount, you subtract this value from the payment, and apply the difference to the principal and keep the interest as the "vig." > > -Daniel > _______________________________________________ > Discuss mailing list > [email protected] > http://lists.blu.org/mailman/listinfo/discuss > _______________________________________________ Discuss mailing list [email protected] http://lists.blu.org/mailman/listinfo/discuss
