"AST1CAL3 EQUATION VARIABLE |N 7 0N|","02-27-1993","21:37:17"
"FREQCONV=12/CMPERIOD NPERIODS=FREQCONV*NUMYEARS RATE%PER=100*(EXP(LOG(ACCUMVAL/PRINCIPL)/NPERIODS)-1) ANNRATE%=RND(FREQCONV*RATE%PER) CMPINT=ACCUMVAL-PRINCIPL EFFRATE%=RND(100*((1+RATE%PER/100)^FREQCONV-1))"
"APPROXIMATION of INTEREST RATES, COMPOUND INTEREST. The nominalannual rate % of compounding is ANNRATE%, the compounding period in months is   CMPERIOD. = 1/30, for daily, = 1 for monthly, =3 for quarterly, =12 for yearly. FREQCONV is the number of compoundings in one year. NPERIODS is number of       compounding periods in the term NUMYEARS.  RATE%PER is the nominal rate % per   compounding period. ACCUMVAL is the value of the PRINCIPL after NUMYEARS of     compounding at a nominal annual rate of ANNRATE%.  CMPINT is actual interest andEFFRATE% is effective annual interest rate.                                     *** Answers to problems ***  (c) PCSCC, Inc., 1993                              (a) Set ACCUMVAL=2150, CMPERIOD=6 (6 mo/yr), NUMYEARS=15.5, PRINCIPL=1000.      The result is nominal annual rate% must equal 5% (ANNRATE%=5).                  (b) Set ACCUMVAL=190, CMPERIOD=3 (3 mo/quarter), NUMYEARS=5, PRINCIPL=125.      The result is nominal annual rate% must equal 8.46% (ANNRATE%=8.46).            Type any key to exit.                                                                                                                                                          ||(a) At what nominal rate ANNRATE% compounded semiannually will $1000 grow to $2150 in 15 1/2 years?                                                             (b) At what nominal rate ANNRATE% compounded quarterly will    $125 result in an accumulated value of $190 in a period of 5 years?                          Type , to see answers.  Type (F2) to return to help file."
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