
; Derivation of the mortgage payment formula.
; Here are 3 related financial formulas that can be "read" into Mathomatic.

set fixed ; Enable fixed-point money mode.

; Compound Interest Future Value Formula:
fv1 = pv*(1+interest_rate)^n

; Annuity Formula:
fv2 = payment*(((1+interest_rate)^n-1)/interest_rate)
; Next we will combine these to produce the Amortized Loan Formula.
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; Set equal to produce the Amortized Loan Formula (Mortgage Payment Formula):
fv1 = fv2
eliminate all ; combine both formulas to produce the mortgage payment formula:
solve verifiable payment ; solve for payment per period:
; pv = present value
; fv = future value (maturity value)
; interest_rate = interest rate per period (1 = 100%)
; n = number of periods
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