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Posted by m6s on 12/29/05 15:50
Me, Myself, and I wrote:
> 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.
>
>
Well to put it simply as possible, I try to find the formula, that when
you say 100000 for 3% the client will pay 300 and some euros more for
the value of the loaned money.e.g. 325Euros. What the banker says to the
client. Apart from any expences...
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