What does it do?
This demos provides a calculator to estimate the amount of money that should be put aside each period to regenerate the fund equivalreny to a current defined sum. Often used for funding the replacement of equipment. |
Information used
This is essnetially the same calculation as the present value calculation and solving for the periodic payment. Information required is current value of fund to be recharged in the future. The periodic interest rate and the number of period as the product of period in a year and number of years.
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Formulae
sinking fund payment = sum desired (i(1 = i)n)/((1 + i)n - 1)
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Scripts & code details
Use is made of the DScriptTM primitive: pmt(sum,i,n)
| Credits
DScriptTM primitives (pmt) by Vanguard Software Corporation and compounding & discounting equations from "Compounding & Dscounting Tables for Project Analysis", J. Price Gittinger, EDI Series, 1984. Mobile formats by VisualModel.com.
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