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Compount Interest VB.Net

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)

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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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Ed
Asked:
Ed
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1 Solution
 
EdAuthor Commented:
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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käµfm³d 👽Commented:
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?
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EdAuthor Commented:
Answered my question, thanks
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