Resend: Loan payments vs financial calculator mismatch

Mike or Penny Novack stepbystepfarm at mtdata.com
Mon Oct 19 16:01:07 EDT 2009


>The small excess in monthly payments is probably due to a different 
>method of interest calculation and I do not have time to investigate. You 
>may be able to produce the correct payment by adjusting the rate. In 
>particular, I see that entering a rate of 5.6% produces a payment of 
>343.53
>
That is likely to be an unsolvable nuisance, a situation where the 
differences between different ways to construct an amortization table 
and different choices in how/where rounding takes place and different 
choices for dealing with the reality that equal payments (all of them) 
rarely going to be an exact solution mean that while discrepencies may 
be made small, they can't be eliminated.

In my day I have written a number of programs to "generate an 
amortizaton table" for x "rents" as well as the other sorts of things 
like accumulation tables, etc. There are a number of different ways the 
calculation can be done even if totally agreed as to how the interest is 
to be calculated calculated (and that's not certain).

Michael D Novack, FLMI


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