Modern Finance PaymentAmount

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PaymentAmount

Returns the level payment per period, negative when the present value is positive.

Syntax

PaymentAmount( annuityTerms )

Examples

#import "std/money"
using money

'' The level payment that amortizes a principal over a term.
''
'' IT IS NEGATIVE when the present value is positive, and that surprises
'' everyone exactly once: you RECEIVED the loan, so you PAY it back.
'' finloan.tiko flips the convention for schedules, deliberately.
dim as Decimal i = RatePerPeriod( DecimalParse( "0.0595" ).Value( ), COMPOUND_MONTHLY ).Value( )

dim as AnnuityTerms t = AnnuityTermsMake( i, 360, DecimalZero( ), _
                                          DecimalParse( "400000" ).Value( ), _
                                          DecimalZero( ), PAY_END_OF_PERIOD )
print PaymentAmount( t ).Value( ).ToStringFixed( 2 )     '' -2385.36

'' A zero-rate loan divides the principal evenly, exactly.
dim as AnnuityTerms z = AnnuityTermsMake( DecimalZero( ), 24, DecimalZero( ), _
                                          DecimalParse( "2400" ).Value( ), _
                                          DecimalZero( ), PAY_END_OF_PERIOD )
print PaymentAmount( z ).Value( ).ToString( )            '' -100

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Library: Finance
Category: Finance
Documented under: Nothing Becomes A Keyword
Source: pkg/std/money/fintvm.tiko in the tiko repository.