Solver Corporate Finance: Compare Loans (using Equal Monthly Installments)

Algebra -> Algebra -> Finance -> Solver Corporate Finance: Compare Loans (using Equal Monthly Installments) Log On

Ad: Algebra Solved!™: algebra software solves algebra homework problems with step-by-step help!
Ad: Algebrator™ solves your algebra problems and provides step-by-step explanations!

Algebra in Finance

Solvers

Lessons

Problems, free tutors

Quiz

In Depth

Source code of 'Corporate Finance: Compare Loans (using Equal Monthly Installments)'

This Solver (Corporate Finance: Compare Loans (using Equal Monthly Installments)) was created by by Shruti_Mishra(0)

: View Source, Show, Put on YOUR site
About Shruti_Mishra: I am a maths graduate from India and am currently persuing masters in Operations Research.

==section input
Compare 2 loans with the following characteristics.
Loan 1: Principal = $ *[input p1=10000], Interest Rate (Yearly, compounded monthly) *[input r1=8]% and Time period = *[input t1=120] months.
Loan 2: Principal = $ *[input p2=10000], Interest Rate (Yearly, compounded monthly) *[input r2=9]% and Time period = *[input t2=96] months.

==section solution
perl
print "The formula for calculating EMI is 
<br>
<center>
{{{EMI = (P*r) * (1+r)^n/((1+r)^n-1)}}}
</center>
</br>
The comparison table would be
<center>";
$r12=$r1/100;
$r22=$r2/100;
$e1=($p1*$r12/12) * (1+$r12/12)**$t1/((1+$r12/12)**$t1-1);
$e1 = sprintf("%.3f", $e1);
$e2=($p2*$r22/12) * (1+$r22/12)**$t2/((1+$r22/12)**$t2-1);
$e2 = sprintf("%.3f", $e2);
$tp1= $e1*$t1;
$tp2= $e2*$t2;
$i1 = $tp1-$p1;
$i2 = $tp2-$p2;

print "<table align=center cellpadding=20 width=500> 
<tr> <td></td><td><b>Loan 1</b></td><td><b>Loan 2</b></td></tr>
<tr><td>EMI</td><td> $e1</td><td>$e2</td></tr>
<tr><td>Time (months)</td><td>$t1</td><td>$t2</td></tr>
<tr><td>Total payments</td><td>$tp1</td><td>$tp2</td></tr>
<tr><td>Total Interest Paid</td><td>$i1</td><td>$i2</td></tr>
</table>
</center>
</br>";
$e2 = int($e2);

==section output
e2

==section check
  p1=10000 r1=8 t1=96 p2=10000 r2=9 t2=120 e2=126