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Formula Gen Math

The document outlines formulas for calculating balances and interest on loans paid via installments. It provides two rules - one for calculating balance based on the principal, interest rate over time since the loan's origin and installment payment. The other rule calculates balance as the principal multiplied by the interest rate over the full term minus the installment payment and interest accrued between the payment and maturity. It also provides formulas for compound interest, amortization, interest, and applying principal to balances.

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God Serena
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261 views2 pages

Formula Gen Math

The document outlines formulas for calculating balances and interest on loans paid via installments. It provides two rules - one for calculating balance based on the principal, interest rate over time since the loan's origin and installment payment. The other rule calculates balance as the principal multiplied by the interest rate over the full term minus the installment payment and interest accrued between the payment and maturity. It also provides formulas for compound interest, amortization, interest, and applying principal to balances.

Uploaded by

God Serena
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Paying on Installment Basis Rule No.

1
¿∗Balance =( P ×(1+ r t 1)−IP)×(1+r t 2) where: IP=Installment Payment
Merchant’s Rule
¿∗¿ Balance=P × ( 1+ r t 0 ) −IP−Pr t 3 where: IP=Installment Payment
n
¿∗¿∗Compound Interest =P [ (1+i ) −1]
Amortization
i
Amortization=P
1−(1+ i)−n
Interest=Balance × i
Applied ¿ Principal=Amortization−Interest
Balance=Previous Balanc e− Applied ¿ Principal
*P=principal, r=rate of interest, t=term (in years)
¿
**t 1=no . of days ¿ the origin date ¿ the dateof installment payment ,
360
t 2=no . of days ¿ the date of installment payment ¿ maturity date ¿
360
¿
***t 0=no . of days ¿the origin date ¿ maturity date
360 ,
t 3=no . of days ¿ the date of installment payment (included )¿ maturity date ¿
360
rate of interest
****i=coded interest = , n=term ( ¿ years ) × conversion period
conversion period
¿ Simple Interest=Prt
Paying on Installment Basis Rule No. 1
¿∗Balance =( P ×(1+ r t 1)−IP)×(1+r t 2) where: IP=Installment Payment
Merchant’s Rule
¿∗¿ Balance=P × ( 1+ r t 0 ) −IP−Pr t 3 where: IP=Installment Payment
n
¿∗¿∗Compound Interest =P [ (1+i ) −1]
Amortization
i
Amortization=P −n
1−(1+ i)
Interest=Balance × i
Applied ¿ Principal=Amortization−Interest
Balance=Previous Balanc e− Applied ¿ Principal
*P=principal, r=rate of interest, t=term (in years)
¿
**t 1=no . of days ¿ the origin date ¿ the dateof installment payment ,
360
t 2=no . of days ¿ the date of installment payment ¿ maturity date ¿
360
¿
***t 0=no . of days ¿the origin date ¿ maturity date
360 ,
t 3=no . of days ¿ the date of installment payment (included )¿ maturity date ¿
360
rate of interest
****i=coded interest = , n=term ( ¿ years ) × conversion period
conversion period
¿ Simple Interest=Prt
Paying on Installment Basis Rule No. 1
¿∗Balance =( P ×(1+ r t 1)−IP)×(1+r t 2) where: IP=Installment Payment
Merchant’s Rule
¿∗¿ Balance=P × ( 1+ r t 0 ) −IP−Pr t 3 where: IP=Installment Payment
n
¿∗¿∗Compound Interest =P [ (1+i ) −1]
Amortization
i
Amortization=P
1−(1+ i)−n
Interest=Balance × i
Applied ¿ Principal=Amortization−Interest
Balance=Previous Balanc e− Applied ¿ Principal
*P=principal, r=rate of interest, t=term (in years)
¿
**t 1=no . of days ¿ the origin date ¿ the dateof installment payment ,
360
t 2=no . of days ¿ the date of installment payment ¿ maturity date ¿
360
¿
***t 0=no . of days ¿the origin date ¿ maturity date
360 ,
t 3=no . of days ¿ the date of installment payment (included )¿ maturity date ¿
360
rate of interest
****i=coded interest = , n=term ( ¿ years ) × conversion period
conversion period
¿ Simple Interest=Prt
Paying on Installment Basis Rule No. 1
¿∗Balance =( P ×(1+ r t 1)−IP)×(1+r t 2) where: IP=Installment Payment
Merchant’s Rule
¿∗¿ Balance=P × ( 1+ r t 0 ) −IP−Pr t 3 where: IP=Installment Payment
n
¿∗¿∗Compound Interest =P [ (1+i ) −1]
Amortization
i
Amortization=P −n
1−(1+ i)
Interest=Balance × i
Applied ¿ Principal=Amortization−Interest
Balance=Previous Balanc e− Applied ¿ Principal
*P=principal, r=rate of interest, t=term (in years)
¿
**t 1=no . of days ¿ the origin date ¿ the dateof installment payment ,
360
t 2=no . of days ¿ the date of installment payment ¿ maturity date ¿
360
¿
***t 0=no . of days ¿the origin date ¿ maturity date
360 ,
t 3=no . of days ¿ the date of installment payment (included )¿ maturity date ¿
360
rate of interest
****i=coded interest = , n=term ( ¿ years ) × conversion period
conversion period

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