[Discuss] Financial database / balance?

[markw at mohawksoft.com (markw at mohawksoft.com)]

> On Sun, Jan 15, 2012 at 6:19 PM,  <markw at mohawksoft.com> wrote:
>> That said, there are subtle differences between the two, but beyond that
>> there are different expectations of what precision means. For instance,
>> if
>> you were to write a amortization calculator, you might be tempted to
>> carry
>> fractional value across calculation periods. In a financial environment
>> this is not done, nothing is carried across transactions.
>
> So, if I ever implement amortizations (I don't even know what that
> means, but this thread has given some hints and they are tantalizing)
> how should I implement them?  Calculate one year at a time, then round
> and calculate again, until the thing expires/matures?

Well, conceptually, amortization is the payment schedule of a loan. It is
calculated as the interest on the principal for a given period. Given a
fixed payment amount, you subtract this value from the payment, and apply
the difference to the principal and keep the interest as the "vig."



>
> -Daniel
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