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%CO:A,12,72%PROGRAMME "FINANCE"                                         15.2.1989

This programme handles the usual financial calculations. 

A.%H1%Compound interest%H1%

  Four values enter into the calculation:

  i     interest during a period
  n     number of periods
  P     present worth
  F     future worth
  
They are linked by the formula   F = P(1+i)%H6%n%H6%

Any value can be computed from the other 3 by setting it equal to zero
in the input.

B.%H1%Annuity calculations%H1%

Five values enter into the calculation:

  i  interest rate over a period
  n  number of periods
  P  present total worth at the beginning of the first period
  F  final total worth at the end of the last period
  a  annuity paid in each period

It can be specified whether the annuity is paid at the beginning or at 
the end of each period.

For annuity payment at the end of each period, these values are linked 
by the following two formulas:

    F=%H1%a%H1%[(1+i)%H6%n%H6%-1]       P=%H1%a%H1%[1-1/(1+i)%H6%n%H6%]
      i                     i

With the help of these formulas (and those derived therefrom for 
annuity payment at beginning of period), the programme computes any two 
values (set to zero in the input) from the other three.

C.%H1%Notes%H1%

  Calculations can be performed for any time period: year, quarter or 
  month. In first  approximation,  for a yearly rate of 6%PC%, the monthly 
  rate is 0.5%PC% and the quarterly 1.5%PC%. More exactly, the corresponding 
  rate should be computed from the formula

                  i'= (1+i)%H6%1/m%H6%-1,

  where m is the number of periods in a year, e.g. 4 quarters and 12 
  months. The above rates become then 0.487%PC% and 1.467%PC%. 

Author: Bruno Pellaud
        Santisstrasse 22
        8123 Ebmatingen, Switzerland 
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