MathGroup Archive 2012

[Date Index] [Thread Index] [Author Index]

Search the Archive

Re: Issue understanding the use of Cashflow

  • To: mathgroup at
  • Subject: [mg127055] Re: Issue understanding the use of Cashflow
  • From: Stuart Nettleton <Stuart.Nettleton at>
  • Date: Wed, 27 Jun 2012 04:10:07 -0400 (EDT)
  • Delivered-to:
  • References: <>

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}]]],  

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  

Cheers, Stuart

UTS CRICOS Provider Code: 00099F
DISCLAIMER: This email message and any accompanying attachments may contain confidential information.
If you are not the intended recipient, do not read, use, disseminate, distribute or copy this message or
attachments. If you have received this message in error, please notify the sender immediately and delete
this message. Any views expressed in this message are those of the individual sender, except where the
sender expressly, and with authority, states them to be the views of the University of Technology Sydney.
Before opening any attachments, please check them for viruses and defects.

Think. Green. Do.

Please consider the environment before printing this email.

  • Prev by Date: Re: Importing RTF
  • Next by Date: Re: "Bug" in SurvivalDistribution?
  • Previous by thread: Issue understanding the use of Cashflow
  • Next by thread: Re: Issue understanding the use of Cashflow