There are closed-form expressions for that, although I don't have them
off the top of my head. Something like
m = P / (1 - i)^n
or maybe
m = P / ((1 + i)^n - 1)
where m is monthly payment, P is principal, i is monthly interest, n is
number of months. It's definitely not very complex for a simple
fixed-term, fixed-rate loan.
Bear
David Hoffer wrote:
My usage is for USA only at this point.
I have inputs of loanAmount, monthlyInterestRate, numberMonths, loanFees; so
this would be for fixed monthly payments.
I understand that commons-math doesn't have specific finance methods however
I think the APR formula is a non-linear equation that I was hoping
commons-math could help solve.
-Dave
-----Original Message-----
From: Luc Maisonobe [mailto:[EMAIL PROTECTED]
Sent: Saturday, August 16, 2008 2:45 PM
To: Commons Users List
Subject: Re: commons-math usage to calculate APR?
David Hoffer a écrit :
Can anyone point me to an example of how to use commons-math to calculate
APR (Annual Percentage Rate)?
There are no specific finance related algorithm in commons-math.
I think this is solvable using either the NewtonSolver or BisectionSolver
but I am not sure how to accomplish this. Perhaps a different way is
better.
I think so, but it depends on what you really need. APR computation
seems to be slightly different depending on local regulations (for
example USA or EU). It also depends on the assumptions you do and the
input data. For example you can compute it one way for fixed monthly
payments and another way for varying monthly payments.
Any help would be greatly appreciated.
Could you explain your needs more precisely ?
Luc
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