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# Compount Interest VB.Net

Posted on 2014-03-11
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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)
``````

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
``````
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Question by:edjones1
• 2

Author Comment

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
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LVL 74

Accepted Solution

käµfm³d   👽 earned 500 total points

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?
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Author Closing Comment

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