Interest Calculation (for Pensions Schemes)
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What algorithm can I solve this pensions problem? A Company's Net Income(NI) is to be distributes to members based on their monthly contributions(MC) and a common rate(R)and a variant power(P) where P is n/12 and n is the month. The equation is I=((((1+R/100)^P)-1)*MC) where I is interest for a particular month. Hence NI=i1+I2+I3+.....In How can I find the unknown which is the Rate R? I really need your help Thanks
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What algorithm can I solve this pensions problem? A Company's Net Income(NI) is to be distributes to members based on their monthly contributions(MC) and a common rate(R)and a variant power(P) where P is n/12 and n is the month. The equation is I=((((1+R/100)^P)-1)*MC) where I is interest for a particular month. Hence NI=i1+I2+I3+.....In How can I find the unknown which is the Rate R? I really need your help Thanks
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Surely the rate (R) needs to be set in advance by the fund's trustees. Or am I totally misunderstanding the issue?
Just say 'NO' to evaluated arguments for diadic functions! Ash
I agree with you, this thing might be impossible. This is the scenario, the client has Net Income that it wants to distribute to members based on an unknown Rate such that the sum of all the Interest earned on month contributions will sum up to this Net Income. Thank You
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I agree with you, this thing might be impossible. This is the scenario, the client has Net Income that it wants to distribute to members based on an unknown Rate such that the sum of all the Interest earned on month contributions will sum up to this Net Income. Thank You
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What algorithm can I solve this pensions problem? A Company's Net Income(NI) is to be distributes to members based on their monthly contributions(MC) and a common rate(R)and a variant power(P) where P is n/12 and n is the month. The equation is I=((((1+R/100)^P)-1)*MC) where I is interest for a particular month. Hence NI=i1+I2+I3+.....In How can I find the unknown which is the Rate R? I really need your help Thanks
when there isn't a closed formula yielding the variable you want, all you can do is create an iterative approach. Basically come up with an initial guess R1, calculate how wrong the outcome is, say F1 = NI1 - NItarget, then use a new guess R2, calculcate F2, etc. until it is sufficiently accurate. An appropriate iteration scheme is offered by the Newton-Raphson algorithm (Google it). :)
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What algorithm can I solve this pensions problem? A Company's Net Income(NI) is to be distributes to members based on their monthly contributions(MC) and a common rate(R)and a variant power(P) where P is n/12 and n is the month. The equation is I=((((1+R/100)^P)-1)*MC) where I is interest for a particular month. Hence NI=i1+I2+I3+.....In How can I find the unknown which is the Rate R? I really need your help Thanks
Solve for December to get rid of P? Or sum the year? Or do I grossly misunderstand? Tadeusz Westawic Sum quid sum.