Amortization; Discounted Cash Flow Analysis; Net Present Value - HP 12C Platinum Owner's Handbook Manual

186 Appendix : Formulas Used
[ iFRAC n ( )
0 =
PV 1 +
INTG n ( )
–
( )
FV 1 + i
With compound interest used for an odd period:
FRAC n ( )
( )
0 =
PV 1 + i
INTG n ( )
–
( )
FV 1 + i

Amortization

n = number of payment periods to be amortized.
INT = amount of PMT applied to interest in period j.
j
PRN = amount of PMT applied to principal in period j.
j
PV = present value (balance) of loan after payment in
j
period j.
j = period number.
INT = {0 if n = 0 and payment mode is set to Begin.
1
|PV × i|
0
PRN = PMT – INT
1
PV = PV + PRN
1 0
INT = |PV
j j –1
PRN = PMT – INT
j
PV = PV
j j –1
n
∑
ΣINT =
INT = INT
j
j = 1
n
∑
ΣPRN =
PRN = PRN
j
= 1
∑
PV = PV + PRN
n 0

Discounted Cash Flow Analysis

Net Present Value

NPV = net present value of a discounted cash flow.
(
1 – 1 +
] ( )PMT
+ 1 + iS --------------------------------------------- -
(
1 – 1 + i
( )PMT
+ 1 + iS --------------------------------------------- -
i
(sign of PMT)
RND
1
1
× i| × (sign of PMT) for j > 1.
RND
j
+ PRN
j
...
+ INT + + INT
1 2 n
...
+ PRN + + PRN
1 2
INTG n ( )
–
)
i
+
i
INTG n ( )
–
)
+