Re: Creating an Amortization Schedule -- RPG400-L

the trick to this is when to round, at what decimal, and perhaps truncate with no rounding.
There are State and perhaps Federal rules to this if you are using it for
business purposes.
I did this in the early 90's for insurance in the state of Florida. The state auditors had to approve an amortization before it could be used to calc
finance contracts (of insurance).
Jim Franz

----- Original Message ----- From: "Shannon ODonnell" <sodonnell@xxxxxxxxxxxxxxxxxxxxxxxxx>
To: "'RPG programming on the IBM i / System i'" <rpg400-l@xxxxxxxxxxxx>
Sent: Thursday, December 04, 2008 5:32 PM
Subject: RE: Creating an Amortization Schedule

This sounds like a school assignment.

Calculating an amortization schedule is a pretty basic formula:

This will get you your monthly payment:

M = P * ( J / (1 - (1 + J) ** -N))

Where:

P = Principal
I = Interest
J = Monthly Interest in decimal form: I(12 x 100)
N = Number of months of loan
M = Monthly Payment Amount

To create the amortization table, create a loop in your program and follow
these steps:

Step 1: Calculate H = P x J, this is your current monthly interest

Step 2: Calculate C = M - H, this is your monthly payment minus your monthly
interest, so it is the amount of principal you pay for that month

Step 3: Calculate Q = P - C, this is the new balance of your principal of
your loan.

Step 4: Set P equal to Q and go back to Step 1: You thusly loop around until
the value Q (and hence P) goes to zero.

You can probably find the algorithm in an old RPG II textbook too. I
remember doing this same thing in RPG, COBOL and in C in school.

HTH

-----Original Message-----
From: rpg400-l-bounces@xxxxxxxxxxxx [mailto:rpg400-l-bounces@xxxxxxxxxxxx]
On Behalf Of Mike
Sent: Thursday, December 04, 2008 4:15 PM
To: RPG programming on the AS400 / iSeries
Subject: Creating an Amortization Schedule

I have been tasked with creating a program that will generate an
amortization schedule. I have only done a bit of research so far, but I need
to calculate out payments, interest per payment and principle per payment.
Can any one point me in the right direction to figure this out?

--
Mike Wills
Midrange Programmer/Analyst
http://whois.mikewills.name/
http://www.linkedin.com/in/mikewills
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