USER GUIDE FOR FINAN.

LIB

The FINAN package contains two very useful programs.

1) EXTRAP
2) FINAN

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EXTRAP

This is an extrapolation program which can be used to find a

unknown value which is situated between two known values:

eg: Let us say we have the following table:

--------------10 I 0.45
15 I 0.56
20 I 0.63
25 I 0.70

And let us say that we have an X=17, and we would like to

find the corresponding Y. Well here is how you do it with
EXTRAP:

The program will ask you for the following variables:

VA: 17
XU: 20
YU: 0.63
XL: 15
YL: 0.56

The numbers beside the variables are for the above mentioned
example.
VA: Value of the number for which you want to find Y.
XU: The 'X' number with a value higher than VA.
YU: The corresponding value of Y for XU.
XL: The 'X' number with a value lower than VA.
YL: The corresponding value of Y for XL.

Once all the values have been entered press ENTER.....

After a few moments you will get this screen:

INTERPOLATION...(should read EXTRAPOLATION)

XU: 20

YU: .63

VA: 17

--->: .588

XL: 15

YL: .56

Therefore the value of Y corresponding to X=17 is 0.588....

If you press ATTN, it will bring you back to the stack.

FINAN

This is a program designed to compute different factors

regarding the value of money given an interest and a period

of time. The period of time can be in days, months, years,

depending on how the interest rate is computed.

The symbols are the following:

A/P: Annuity given the present value.
P/A: Present value given the Annuity.
P/F: Present value given future value.
F/P: Future value given the present value.
F/A: Future value given the annuity.
A/F: Annuity given the future value.

In other words, if you want to have $100,000 in ten years,

and the interest rate is 15%, you may want to know how much
you have to put aside each year:

This a case of A/F...so you plug in the values for

I:Interest, and N: Number of periods in the program and you
will get a factor for A/F=0.049252
So if you multiply $100,000*0.049252=4925.21
In other words, you will have to put aside $4925.21 every
year for the next ten years in order to have $100,000 at the
end.

As you can see from the example above, this factor is a ratio
between the two numbers....so to find the value of what you
are looking for, you have to multiply this factor by the
value of what you know (in our example it was the future
value).

NOTE: When you input the interest rate, put it in the form of
0.XXX.