Module: CashFlowAnalysis::Calculator::Payment

Defined in:
lib/cash_flow_analysis/calculator/payment.rb

Class Method Summary collapse

Class Method Details

.calculate(principal, term, per_period_rate) ⇒ Numeric

Calculates the payment for a loan, assuming fixed payments and rates.

Parameters:

  • principal (Numeric) —

    the present value of the loan

  • term (Fixnum) —

    the term of the load

  • per_period_rate (Numeric) —

    the interest rate per period

Returns:

  • (Numeric) —

    the payment required per period



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# File 'lib/cash_flow_analysis/calculator/payment.rb', line 10

def self.calculate(principal, term, per_period_rate)
  (per_period_rate * principal) / (1 - ((1 + per_period_rate) ** (-1 * term)))
end