Re: Issue understanding the use of Cashflow
- To: mathgroup at smc.vnet.net
- Subject: [mg127055] Re: Issue understanding the use of Cashflow
- From: Stuart Nettleton <Stuart.Nettleton at uts.edu.au>
- Date: Wed, 27 Jun 2012 04:10:07 -0400 (EDT)
- Delivered-to: l-mathgroup@mail-archive0.wolfram.com
- References: <201206260846.EAA06860@smc.vnet.net>
Hi, you might have missed the cashflow at time zero 0. These two
formulations give the same answer of 246,938:
npv1=TimeValue[Annuity[1342.05, 360 - 10], 0.05/12]
npv2=TimeValue[Cashflow[Join[{0}, Table[1342.05, {i, 360 - 10}]]], 0.05/12]
Also, you can check this with -NPV as the time zero element:
npv3=TimeValue[Cashflow[Join[{-npv1}, Table[1342.05, {i, 360 - 10}]]],
0.05/12]
and you have Chop[npv3] == 0
For and amortization schedule, look at the help page for TimeValue, which
provides a clear example:
"Since a loan's balance at any time is equal to the present value of its
remaining future payments, Annuity can be used to create an amortization
table"
Cheers, Stuart
UTS CRICOS Provider Code: 00099F
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- References:
- Issue understanding the use of Cashflow
- From: vandel@gmail.com
- Issue understanding the use of Cashflow