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Bug 304441 - Error in loan example in the Tutorial and Concept guide, section 7.4.3.3
Error in loan example in the Tutorial and Concept guide, section 7.4.3.3
Status: VERIFIED FIXED
Product: GnuCash
Classification: Other
Component: Documentation
1.8.x
Other Linux
: Normal minor
: ---
Assigned To: Chris Lyttle
Chris Lyttle
Depends on:
Blocks:
 
 
Reported: 2005-05-17 02:04 UTC by Joerg Henrichs
Modified: 2018-06-29 20:52 UTC
See Also:
GNOME target: ---
GNOME version: ---


Description Joerg Henrichs 2005-05-17 02:04:25 UTC 
Version details: online version

The online version at
http://www.gnucash.org/docs/v1.8/C/gnucash-guide/loans_calcs1.html#loans_calcsdetails2
contains an error in the example:

> Let's recalculate the examples shown above, this time using the mathematical 
> formulas rather than the Financial Calculator. What is your monthly payment on
>  a $100000 30 year loan at a fixed rate of 4% compounded monthly?
> 
> First, let's define the variables: n = (30*12) = 360, PV = 100000, PMT = 
> unknown, FV = 0, i = 4, CF = PV = 12, X = 0 (end of payment periods).
The value of 'i' should be 0.04, not 4. With i=4 you compute the repayment for
400% interest, resulting in a monthly repayment of 33,333.3 !

Using the correct number results in a repayment of $477.415...

Cheers (and thanks for providing gnucash)
   Joerg
Comment 1 Bengt Thuree 2006-04-27 08:50:29 UTC 
Fixed in SVN (for 2.0 release)
Comment 2 John Ralls 2018-06-29 20:52:11 UTC 
GnuCash bug tracking has moved to a new Bugzilla host. This bug has been copied to https://bugs.gnucash.org/show_bug.cgi?id=304441. Please update any external references or bookmarks.