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Appendix B: Reference Information 383
Iterate from m = 1 to pmt2
then:
Balance, principal, and interest are dependent on the values of
PMT, PV, æ, and pmt1 and pmt2.
Cash Flow
where:
Net present value is dependent on the values of the initial cash flow (CF
0
), subsequent cash flows (CFj),
frequency of each cash flow (nj), and the specified interest rate (i).
irr() = 100 i, where i satisfies npv() = 0
Internal rate of return is dependent on the values of the initial cash flow (CF
0
) and subsequent cash
flows (CFj).
i = I% 100
Interest Rate Conversions
where:
RND
= round the display to the number of decimal places
selected
RND12
= round to 12 decimal places
4
Eff
=
where:
x
=.01 Nom CP
4Nom
=
where:
x
=.01 Eff
Eff
= effective rate
CP
= compounding periods
Nom
= nominal rate
I
m
RND RND12
i bal m 1=
bal m bal m 1I
m
RND PMT+=
bal( ) bal pmt2=
Prn( ) bal pmt2bal pmt1=
Int( ) pmt2 pmt1–1+RND PMTPrn( )=
npv( ) CF
0
CF
j
1 i+
-
S
j
1
11i+
-
n
j

i
----------------------------------
j 1=
N
+=
S
j
n
i
i 1=
j
j 1
0 j 0=
=
100 (e
CP x 1+ln
1)
100 CP [ e
1 CP x 1+ln
1
390


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