# Financial Problem

• Jan 25th 2010, 08:02 PM
Hellooo
Financial Problem
Is there a way to distinguish between which formula to use for a financial problem that asks you to find the regular payment? The future value of an annuity or present value formula?
• Jan 26th 2010, 05:33 AM
Wilmer
WHAT are you trying to calculate: a loan payment?
• Jan 26th 2010, 05:44 AM
e^(i*pi)
Compound interest formula is usually the best place to start

$A_t = A_0\left(1+\frac{x}{n}\right)^{nt}$

Where:

• A_t = Amount at time t
• A_0 = Inital amount
• x = annual interest rate
• n = compound period
• t = time
• Jan 26th 2010, 07:19 AM
Hellooo
Quote:

Originally Posted by Wilmer
WHAT are you trying to calculate: a loan payment?

so if i were calculating loan payments i should use the present value formula?

thanks guys for the quick responds
• Jan 26th 2010, 09:30 AM
Wilmer
Quote:

Originally Posted by Hellooo
so if i were calculating loan payments i should use the present value formula?

Noooooo...when calculating loan payments, use the "payments formula";
use the present value formula when calculating present values!