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| Mathematical Derivation of Annuity Interest Rate
and its Application
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Full
text: |
 PDF(595.5KB) |
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Source |
International Journal of Experimental Algorithms (IJEA) |
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Table of Contents |
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Download
Complete Issue PDF(1.06MB) |
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Volume: 2 Issue: 2 |
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Pages: NULL |
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Publication
Date: September / October 2011 |
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ISSN
(Online): 2180-1282 |
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Pages |
27 - 41 |
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Author(s) |
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Published
Date |
31-05-2011 |
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Publisher |
CSC
Journals, Kuala Lumpur,
Malaysia |
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ADDITIONAL
INFORMATION |
| Keywords Abstract References Cited by Related Articles Collaborative
Colleague |
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KEYWORDS: Matlab programming, Investment Mathematics, Statistical Toolbox |
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| This Manuscript is indexed in the following databases/websites:- |
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| 1. Scribd |
| 2. Google Scholar |
| 3. Docstoc |
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| A fundamental task in business for investor or borrower is to know the interest rate of an annuity. In this type of problem, the size of each periodic payment(R), the term(n), and the amount(Sn) or the present value of the annuity(An) are usually given. However, a direct equation representing the Annuity Interest Rate(i) is not available, since an approximate value of the Annuity Interest Rate is obtained by interpolation method based on table showing (Sn/R) values. This paper emphasizes the real time computational problem for Annuity interest rate. It has therefore been important to derive an equation for computing the Annuity Interest rate. The evaluation of error analysis has been discussed. The new algorithm saved computational energy by approximately 99.9% than that of the tabulated one. |
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| 1 |
Shao and Shao, “Mathematics for management and finance”, eighth edition, 1998.
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| 2 |
Email: karamfayed_1@hotmail.com
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| Karam Aliy Fayed : Colleagues
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