Solved

Compount Interest VB.Net

Posted on 2014-03-11
3
260 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

Free Tool: Path Explorer

An intuitive utility to help find the CSS path to UI elements on a webpage. These paths are used frequently in a variety of front-end development and QA automation tasks.

One of a set of tools we're offering as a way of saying thank you for being a part of the community.

Question has a verified solution.

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

Today I had a very interesting conundrum that had to get solved quickly. Needless to say, it wasn't resolved quickly because when we needed it we were very rushed, but as soon as the conference call was over and I took a step back I saw the correct …
International Data Corporation (IDC) prognosticates that before the current the year gets over disbursing on IT framework products to be sent in cloud environs will be $37.1B.
Email security requires an ever evolving service that stays up to date with counter-evolving threats. The Email Laundry perform Research and Development to ensure their email security service evolves faster than cyber criminals. We apply our Threat…

749 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