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Payment for a leasing contract
I am looking for an algorithm to calculate the payment for a loan per month (PMT) with a future value of investment added.
For a simple PMT I have the algorithm as:
pmt = Math.round(pv * (ra / (1 - (1 / Math.pow(1+ra,mo)))))
where:
pv = present value
ra = interest rate/month (which is interest rate per year/1200)
mo = number of payments (number of months)
My accounting knowledge ends here.
Now I need to include in this algorithm the future investment (say fv) to calculate the new PMT (in fact first PMT, as in this case th PMT floats from a month to another because the rate floats also, I was told...) for a leasing contract.
Has anyone of you did such a thing? Or even know where I could find the math algorithm somewere, please?
For a simple PMT I have the algorithm as:
pmt = Math.round(pv * (ra / (1 - (1 / Math.pow(1+ra,mo)))))
where:
pv = present value
ra = interest rate/month (which is interest rate per year/1200)
mo = number of payments (number of months)
My accounting knowledge ends here.
Now I need to include in this algorithm the future investment (say fv) to calculate the new PMT (in fact first PMT, as in this case th PMT floats from a month to another because the rate floats also, I was told...) for a leasing contract.
Has anyone of you did such a thing? Or even know where I could find the math algorithm somewere, please?
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