topic Re: problem in creating compound intrest for months in SAS Studio

problem in creating compound intrest for months

jonty — Wed, 05 Jul 2017 07:53:37 GMT

i want compound interest for eaach month till 25 years but something is wrong with my code kindly help;-

data Compound_intrest2;
rate = 0.07;
do years = 1 to 25;
amount = 500000;
intrest + (intrest+amount)*rate;
totalamount + (amount + intrest);
output;
end;
run;

Re: problem in creating compound intrest for months

Astounding — Wed, 05 Jul 2017 12:29:15 GMT

Well, you do have several issues with the code. Here are the biggest ones. There is no mention of MONTH anywhere. AMOUNT gets added to the total amount every year. Here's one possibility:

data compounded;

rate = 0.07;

current_amount = 500000;

do years = 1 to 25;

do months = 1 to 12;

interest = current_amount * (rate / 12);

current_amount = current_amount + interest;

output;

end;

run;

The OUTPUT statement is optional, depending on whether you want to see a separate set of numbers for each month or not.

Re: problem in creating compound intrest for months

RW9 — Wed, 05 Jul 2017 08:17:22 GMT

Your code seems to be syntactily correct, not sure how I can guess what is "wrong". Follow the guidance found by Post button on new posts - post example test data as a datastep (so we can see some data and structure), post example required output, and explain any logic between the two. The compound part seems to indicate you want to retain the value, but can't tell from that.

Re: problem in creating compound intrest for months

Kurt_Bremser — Wed, 05 Jul 2017 12:19:20 GMT

I like to use a formula with exponentiation instead of adding up:

data compound_intrest2;
rate = 0.07;
amount = 500000;
year = 1;
month = 1;
endyear = 25;
endmonth = 12;
total_months = 0;
do until (year >= endyear and month >= endmonth);
  total_months + 1;
  tot_amount = amount * (rate/12 + 1) ** total_months; /* I guess that rate is a yearly value */
  curr_interest = tot_amount - amount * (rate/12 + 1) ** (total_months - 1);
  tot_interest = tot_amount - amount;
  output;
  month + 1;
  if month > 12
  then do;
    year + 1;
    month = 1;
  end;
end;
drop endyear endmonth total_months; /* not needed any longer */
run;