Total interest paid for a load L(money) over M months at an annual interest rate ia(%)

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Hi,

Calculate the total interest paid:

D

DJFAnswer

16-Pearl

There are of course built-in finance functions within mathcad and excel.

Werner_E

25-Diamond I

M=240 months is wrong! M is not a time, it has to be just a number (possibly numbering the months).

In the formula for "p.mon" the definition of "m" in the exponent is missing.

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C

Cornel

Author

19-Tanzanite

@Werner_E wrote:

M=240 months is wrong! M is not a time, it has to be just a number (possibly numbering the months).

Yes, its the numbering/number of the months for which the load was made.

@Werner_E wrote:
In the formula for "p.mon" the definition of "m" in the exponent is missing.

From where I took the problem its not written either there. But from my interpretation is like that:

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Werner_E

25-Diamond I

My point was merely that the information is garbage, as is unfortunately very often the case in so-called economic “science”.
If a quantity is dimensionless, then you can't assign a unit to it in the text either.
And if you use a variable “m” in your explanations, then you also have to say what you mean by it.
Simply replacing “m” with a “k” would be too short-sighted, you would just have to express that p.mon is dependent on “m” - in mathematics this is called a function 😉
In the formula for b.k you can then use the running variable k as a function argument.

But actually its just a typo and "m" should be "M" !

See my answer below.

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