|
|
Posted by Me, Myself, and I on 12/29/05 01:09
The proper way to handle this would be to use the actual mathamatical
formula corresponding to the actual situation for which you are trying to
solve for. what exactly are your trying to solve. Normally when you refer to
the FV of somthing it is the value of either an investment or loan at some
specific time in the future.
Now from what you have just said, you are looking to solve the value of a
loan. Are you sure you are trying to solve the future value of a loan at
some given point in time or are you trying to solve the PV (residual value)
of a loan at a certain point in time? if you give me the specifics I can can
you the actual formulae to be used.
In effect, if you are trying to solve the value of a loan then you would an
annuity formula whereby the capital of the loan is reduced by the PMTs made.
You would then have to decide if this is the book value or the commuted
value of the loan. What I mean by that, are you looking for the loan value
on the books or the value to pay off the loan. most loans have contractual
provisions for some penalty to be applied should it be reimbursed ahead of
time. something along the lines of the commuted value of the loan at the
current rate applied for loan at the same plus some factor such as 1/2 a
percent.
not trying to be a PITA but if you want the appropri9ate foormula i would
need the specifics.
James
"Dimitris Mexis" <m65@vivodinet.gr> wrote in message
news:dop7ab$11a2$2@ulysses.noc.ntua.gr...
|
| I never expected this dialog here, while I am having problem with the
| formula that is used under banking system for evaluating a loan.
| Do you have any suggestion? This is not the FV just that simple.
Navigation:
[Reply to this message]
|