This repository contains a simple program for calculating the value of a loan. On running loan_analytics the user is prompted to specify initial parameters defining a loan. These include:
- the principal value;
- the interest rate (per annum);
- whether the loan is continuously compounded or not.
If the loan is not continuously compounded, it is discretely compounded. Accordingly, the user will be prompted to specify the number of compounding periods. Note, all time units are expressed in terms of years.
With these inputs established, the user can then choose among the following options:
- calculate the value of the loan after some elapsed time;
- calculate the value of the loan after some elapsed time, taking into account a yearly repayment amount;
- calculate the lifetime of the loan with a specified, yearly repayment amount;
- calculate the desired yearly repayment amount in order to pay off the loan after a specified time.
For derivations of formulae used in the implementation of this program, see the online article here.