Sun, 9 Dec 2007 02:07:01 -0800 from Steffen
:
I have the following data. I do an investment (give a loan) of 1.000.000
Euro. The rate I want is 10%. The period is 5 years. What functions should I
use to calculate the sum the customer should pay me after 5 years. And if the
customer should pay me in advance what would the sum be then.

This depends on the method of accruing or calculating interest. It
should be stated in the loan documents, but if it's not there then
national law probably specified.

For example, interest might be accrued annually on the first day or
the year. In that case, the amount due is the same on the first
through 365th day of each year. Or it might be accrued on the first
or last day of each month, Or it might be accrued and compounded
daily, or accrued daily but compounded monthly, or ...

Since a million euro are involved, you need to check the loan
documents and applicable law carefully.

--
Stan Brown, Oak Road Systems, Tompkins County, New York, USA
http://OakRoadSystems.com/
"If there's one thing I know, it's men. I ought to: it's
been my life work." -- Marie Dressler, in /Dinner at Eight/