Wise Idiot
New member
r - the annual interest rate
m - number of times interest is compounded in a year
N - duration of mortgage (in years)
P- Principal amount
FP - fixed payment that is payed in every period)
m*N*FP = (r/m)(P) + (FP-((r/m)(P)) + (r/m)[P-(FP-(r/m)*P)] + [FP - (r/m)*(P-(FP-(r/m)*P))] + ...., each of the two addends is repeated for however many periods there are (m*N)
If you could represent in sigma notation, how would you do it?
Also tell me if the equation is correct.
m - number of times interest is compounded in a year
N - duration of mortgage (in years)
P- Principal amount
FP - fixed payment that is payed in every period)
m*N*FP = (r/m)(P) + (FP-((r/m)(P)) + (r/m)[P-(FP-(r/m)*P)] + [FP - (r/m)*(P-(FP-(r/m)*P))] + ...., each of the two addends is repeated for however many periods there are (m*N)
If you could represent in sigma notation, how would you do it?
Also tell me if the equation is correct.