PMT formula

  • Thread starter Thread starter siristron
  • Start date Start date
Sinistron,
As far as I know there is no way to show the formula.
It is however somthing like : PV-FV*A(n)+PMT*a(n)=0.

A(n) = 1 / (1+i) ^ n ( = present value of a lump sum ad 1 after n years)
a(n) = (1 - A(n)) / i resp. (1-A(n)) / i * (1+i) for payment at the end
resp. the beginning of the year. (present value of a series of payment ad 1
during n years)

Hereby the signing convention is used (incoming money is positive ;
outcoming is negative)

--
Regards,
Auk Ales

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