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Math Help - Financial Problem

  1. #1
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    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?
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  2. #2
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    WHAT are you trying to calculate: a loan payment?
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  3. #3
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    e^(i*pi)'s Avatar
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    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
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  4. #4
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    Quote Originally Posted by Wilmer View Post
    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
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  5. #5
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    Quote Originally Posted by Hellooo View Post
    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!
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