Finance Package

> with(finance);

The finance package has a number of useful routines that simplify some calculations. The programs are limited, but do provide some tools. Below we demonstrate a couple of the commands in this area. Certainly the Maple Help will provide a much better idea of what can be done.

The amortization command can do a variety of things. The simplest example is producing an amortization table for say paying off a credit card. Suppose you have a debt of $3000 at and annual interest rate of 12%. If you can pay $100/month, then how much does this cost you.

> amortization( 3000.00, 100, 0.12/12);

This shows it will take you 3 years to pay off the loan at a cost of $584.62 to you.

The amortization function allows other operations, which can be viewed in Help. Next we consider the yieldtomaturity function. Suppose I hold a bond with face value of 1000 U with an annual coupon rate of 12%. The coupon is paid twice yearly. The maturity is in 3 years. What is the yield to maturity of the bond, compounded semi-annually given that its present value is 1050.75 U

> yieldtomaturity( 1050.75, 1000, 0.12/2, 6 );

Yield is 5% per half year, therefore it is

> %*2;

10% per year.