$np$ (number of periods) = The number of payment periods, usually expressed in months. $fv$ (future value) = The ending balance after the specified number of payment periods ($np$). This number can be zero, positive (when you take out a loan), or negative (when you make a deposit). $pv$ (present value) = The starting balance in an account. The exception, as Isaac Newton discovered, is that interest computation requires iteration and may result in several solutions. With one exception, each kind of problem can be solved immediately, using a well-defined equation. Then, it's time to shop around and get quotes from multiple lenders before deciding which one to use.These equations solve problems that involve compound interest. To lower your ratio, pay down debt or consider ways to increase your income. Many lenders want to see a DTI ratio of 36% or less, but it depends on which type of mortgage you get.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |