Calculate payments based on APR

[Kenneth Brody]

Robert T. Repko (R Squared Consultants) wrote:
> I followed the example Laura had in her help file.
> Interpreting the numbers in her example $200,000, 360 months (30 yr 
> loan), at 7.25%
> 
>       if: ' What would be the payment for this loan?
>     then: PMT = TVM_PMT("360",".0725","200000","0") ' PMT will be -631.40595650

It looks like you found an error in Laura's help files, since 7.25% should 
be "7.25" (and divided by 12 for monthly interest).  Of course, if you give 
the same "wrong" numbers to a financial calculator, you get the same "wrong" 
answer.

> I used:
> eh=TVM_PMT("12",".139","1000","0")
> 
> I see my mistake, instead of using a monthly rate (.139/12) I used 
> the APR of .139 in the calculations.
> 
> Thanks Ken I never would have seen my error.  I hate when I do that, 
> spend days on a problem and the solution is right under my nose and I 
> can't see it. 

Just plug the same numbers into filePro as you would your calculator.  :-)

-- 
Kenneth Brody