Solved

Compount Interest VB.Net

Posted on 2014-03-11
3
257 Views
Last Modified: 2014-03-11
Hi

I recently had help with some vb in working out APR. The code is correct however I've just realised that it is slightly inaccurate as it needs to consider ' Compound Interest'


I was working out APR with this


 
       Dim LoanPmt As Double = Math.Round(Pmt(0.119 / 12, 300, -17044), 2)
        Dim APR As Double = Rate(300, -LoanPmt, 15000)

        Label1.Text = ((APR * 12) * 100)

Open in new window



What I've been told by the lender is that I now need to consider compound interest.

To do this I need to include this(below) into my formula. Can someone help me do this.  Thanks

= (1+Rate) ^12-1 

Open in new window

0
Comment
Question by:edjones1
  • 2
3 Comments
 

Author Comment

by:edjones1
ID: 39920630
Apparently I'm not considering the compound interest. What I'm doing wrong is multiplying the rate by 12.. I need  to change the formula to: = (1+Rate) ^12-1
0
 
LVL 75

Accepted Solution

by:
käµfm³d   👽 earned 500 total points
ID: 39920952
I always thought the CI formula was this (https://qrc.depaul.edu/StudyGuide2009/Notes/Savings%20Accounts/Compound%20Interest.htm):

A = P(1 + (r/n))^nt

...where:

P = principal amount (the initial amount you borrow or deposit)
r  = annual rate of interest (as a decimal)
t  = number of years the amount is deposited or borrowed for.
A = amount of money accumulated after n years, including interest.
n  =  number of times the interest is compounded per year

How did you come up with your formula?
0
 

Author Closing Comment

by:edjones1
ID: 39921017
Answered my question, thanks
0

Featured Post

DevOps Toolchain Recommendations

Read this Gartner Research Note and discover how your IT organization can automate and optimize DevOps processes using a toolchain architecture.

Question has a verified solution.

If you are experiencing a similar issue, please ask a related question

Problem Hi all,    While many today have fast Internet connection, there are many still who do not, or are connecting through devices with a slower connect, so light web pages and fast load times are still popular.    If your ASP.NET page …
Real-time is more about the business, not the technology. In day-to-day life, to make real-time decisions like buying or investing, business needs the latest information(e.g. Gold Rate/Stock Rate). Unlike traditional days, you need not wait for a fe…
This tutorial gives a high-level tour of the interface of Marketo (a marketing automation tool to help businesses track and engage prospective customers and drive them to purchase). You will see the main areas including Marketing Activities, Design …

778 members asked questions and received personalized solutions in the past 7 days.

Join the community of 500,000 technology professionals and ask your questions.

Join & Ask a Question