3 compound interest, Compound interest -3-1 – Casio fx-9860G SD User Manual
Page 374
20050401
7-3 Compound Interest
This calculator uses the following standard formulas to calculate compound interest.
u
u
u
u
u Formula I
PV+PMT
×
+ FV
i
(1 + i)
n
(1 + i)
n
(1 + i
×
S
)
[(1+ i)
n
–1
]
1
= 0
i =
100
I
%
Here:
PV=
–(PMT
×
+ FV ×
)
β
α
FV= –
β
PMT
×
+ PV
α
PMT=
–
β
PV
+ FV
×
α
n =
log
{ }
log(1 + i)
(1 + i
× S ) PMT+PVi
(1 + i
× S ) PMT–FVi
i
(1 + i)
n
(1 + i
×
S
)
[(1+ i)
n
–1
]
=
α
(1 + i)
n
1
=
β
F
(
i
) = Formula I
+
(1 + i
× S)[n(1+ i)
–n–1
]+S
–
nFV
(1 + i)
–n–1
i
i
PMT
(1 + i
× S)[1– (1+ i)
–n
]
F(i)'=
–
[
+S
[1–(1+ i)
–n
]
]
u
u
u
u
u Formula II (I% = 0)
PV
+ PMT
× n + FV = 0
Here:
PV =
– (PMT
× n + FV )
PV
: present value
FV
: future value
PMT
: payment
n
:
number of compound periods
I
%
: annual interest rate
i
is calculated using Newton’s Method.
S
= 0 assumed for end of term
S
= 1 assumed for beginning of term
7-3-1
Compound Interest