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  • 07-08-2013 8:37pm
    #1
    Stabshauptmann
    Registered Users, Registered Users 2 Posts: 4,885 ✭✭✭


    .


Comments

  • #2
    Yakuza
    Registered Users, Registered Users 2 Posts: 5,141 ✭✭✭Yakuza


    Bah, I had a post crafted - your formula for the payments at the start of the year was wrong - it should have been multiplied by (1+k) and would have yielded the same answer as your by-hand calculation.

    The formula is fairly easy to derive from first principles - treat it as the sum of an geometric series with a factor of (1+g)/(1+k) and the initial term will either be C or C*(1+k) depending on whether the inital payment was deferred one year or due immediately.


  • #3
    Stabshauptmann
    Registered Users, Registered Users 2 Posts: 4,885 ✭✭✭Stabshauptmann


    I appreciate greatly that you put the time in to help me, and yes you are correct, I was missing the 1+k.

    Thank you.


  • #4
    Tweej
    Registered Users, Registered Users 2 Posts: 171 ✭✭Tweej


    Don't tell me what to do thread title.


  • #5
    Michael Collins
    Moderators, Science, Health & Environment Moderators Posts: 1,852 Mod ✭✭✭✭Michael Collins


    Stabshauptmann wrote: »
    .

    Hey Stabshauptmann, it would be preferable if you could leave your post intact, even (or especially!) after it has been answered as it may be of interest/help to other users of this forum.

    Anyway, glad you got sorted.


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