Errors in the formula and in the result?

Installations & Python Packages
1

Course Name: Python for Trading: Basic, Section No: 3, Unit No: 8, Unit type: Notebook

AP = (FV * r) / (((1 + r) ** n - 1)*(1+r)) 

 

The stored formula does not seem to be correct and gives an incorrect result.

AP = (FV * r) / (((1 + r) ** n - 1)*(1+r)) 

Brackets are missing in the formula.
The correct result :
AP = (FV * r) / (((1 + r) **( n - 1)*(1+r)))

Or am I wrong ?

2

Hi Dirk,



The equation in the notebook is correct. The formula for calculating annuity payments, given future value, is:





As per the above formula, the brackets are correctly placed.



Hope this helps!