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From |
Sara Kimberlin <skimberlin@gmail.com> |

To |
statalist@hsphsun2.harvard.edu |

Subject |
Re: st: RE: Calculating compound interest using loops? |

Date |
Tue, 10 Jul 2012 11:06:28 -0700 |

This is exactly what I was looking for - thank you Lance! And thank you Steen, too, for your helpful earlier tip. Sara On Mon, Jul 9, 2012 at 2:42 PM, Lance Erickson <lance_erickson@byu.edu> wrote: > Hi Sara, > > Something like this (below) should give you a more efficient version of the code you had. > > Best, > Lance > > > // create test data > clear > input id principal rate payment > 1 200000 .005 1199.1 > end > > // get amount of monthly interest > local interest = 0 > forvalues i = 1/360 { > local j = `i' - 1 > gen int`i' = (principal - (payment*`j') + `interest') * rate > local interest "`interest' + int`i'" > } > > // get amount of yearly interest > local l = 1 > foreach k of numlist 12(12)360 { > local m = `k' - 11 > egen int_y`l' = rowtotal(int`m'-int`k') > local ++l > } > > -----Original Message----- > From: owner-statalist@hsphsun2.harvard.edu [mailto:owner-statalist@hsphsun2.harvard.edu] On Behalf Of Sara Kimberlin > Sent: Monday, July 09, 2012 1:23 PM > To: statalist@hsphsun2.harvard.edu > Subject: st: Calculating compound interest using loops? > > Hello, > > I'm trying to calculate annual interest payments on a 30-year loan, with interest compounding monthly, and can't figure out how to write the code efficiently. > > Pre-defined variables include principal, rate, and monthly_payment. I know I can manually calculate the amount of interest for each monthly period like this: > > gen interest_month1 = principal * rate > > gen interest_month2 = (principal - (monthly_payment * 1) + > interest_month1) * rate > > gen interest_month3 = (principal - (monthly_payment * 2) + > interest_month1 + interest_month2) * rate > > gen interest_month4 = (principal - (monthly_payment * 3) + > interest_month1 + interest_month2 + interest_month3) * rate > > ... and so on through interest_month360. > > And then I can manually add up the monthly interest to calculate the annual interest for each year, e.g.: > > gen interest_year1 = interest_month1 + interest_month2... + interest_month12 > > But I think there must be a way to write this much more efficiently using loops, and I haven't been able to figure it out. I'd appreciate any help. > > Thank you, > Sara * * For searches and help try: * http://www.stata.com/help.cgi?search * http://www.stata.com/support/statalist/faq * http://www.ats.ucla.edu/stat/stata/

**References**:**st: Calculating compound interest using loops?***From:*Sara Kimberlin <skimberlin@gmail.com>

**st: RE: Calculating compound interest using loops?***From:*Lance Erickson <lance_erickson@byu.edu>

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