Re: Calculation Price per unit of Electricity

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Article #178

#178

From: Bruno Campanini
Date: Tue, 10 Apr 2007 14:27

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<John@eskom.co.za> wrote in message 
news:evg2uk$u4g$1@newsreader02.ops.uunet.co.za...
> Please can you send me the equation that you used.
>
> Thanks

C = the amount you borrow
i = rate of interest
n = number of payments

Constant Amount for Payments due the end of each  n periods is:

        C * i
-------------------
               1
 1 -  ------------
        (1 + i) ^ n


Where  i  is the rate of interest related to one unit
of C and to one unit of  n.
I.e.  5% per annum  is  i = 0.05  and n is number of years.

If you have  interest 5% per annum  and  n  is the number
of months you must convert  a per-annum rate in a
per-month rate which is not  0.05/12 = 0.004167 but

(1 + 0.05)^(1/12) - 1 = 0.00407 = 0.407% per-month

Bruno

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From: "Bruno Campanini" <BC@gmail.com>
Newsgroups: aus.mathematics
References: <ev2gui$3n$1@newsreader02.ops.uunet.co.za> <4617d5ca$0$17946$4fafbaef@reader1.news.tin.it> <evg2uk$u4g$1@newsreader02.ops.uunet.co.za>
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Subject: Re: Calculation Price per unit of Electricity
Date: Tue, 10 Apr 2007 16:27:25 +0200
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