Go Back   The Finance Forums > Finance forums > General Finance



General Finance Discuss general personal finance issues and home accounting not covered on the other finance boards.

Reply
 
Thread Tools
  #1  
Old 09-24-2017, 11:18 PM
marcelo marcelo is offline
Junior Member
 
Join Date: Sep 2017
Posts: 2
Default Problems converting a rate

Hi,

I need to prove changing the composition of the rates, the total payments are the same.

(Anually)

- Investment: 1000
- Anual Rate: 15.34%
- Number Payments: 3

EACH PAYMENT (PMT): $ 440,45
TOTAL PAYMENTS: $440,45 x 3 = $1321.35

(Monthly)

- Investment: 1000
- Monthly Rate: [( 1 + annual_Rate)^(1/12)]-1 = 1.2%
- Number payments: 36

EACH PAYMENT (PMT): $ 34.35
TOTAL PAYMENTS: $ 34.35 x 36 = $1236.64


I don't know why when I sum all the payments give me different ressults (1321.35 annual evaluation and 1236.64 in monthly evaluation).

¿Anyone know what is the correct way to convert the annual rate to montly rate?

Thanks in advance.

Best regards
Reply With Quote

Old Sponsors
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



» Boards




All times are GMT -4. The time now is 08:05 PM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2017, Jelsoft Enterprises Ltd.