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How do I code Eulers method in VBA/ Excel with this. Eq.(3) mentioned in the problem is the equation that is given on the side
How do I code Eulers method in VBA/ Excel with this. Eq.(3) mentioned in the problem is the equation that is given on the side
for $750,000 with a constant interest rate of 5% (r = 0.05) and a monthly payment p = $4000. 1. Implement Euler's method for Eq. (3) with step size h = 0.5. Run the method until the mortgage is paid off and determine when it is paid off. Note: in reality, the mortgage is paid off when its value is zero. However, due to errors in the computations (both discretization and roundoff), it is likely that Euler's method will not produce an exact value of 0 for the mortgage value for any time. To account for this, consider the mortgage to be paid off when its value first becomes negative. A' = rA - 12p, A(0) = Ao for $750,000 with a constant interest rate of 5% (r = 0.05) and a monthly payment p = $4000. 1. Implement Euler's method for Eq. (3) with step size h = 0.5. Run the method until the mortgage is paid off and determine when it is paid off. Note: in reality, the mortgage is paid off when its value is zero. However, due to errors in the computations (both discretization and roundoff), it is likely that Euler's method will not produce an exact value of 0 for the mortgage value for any time. To account for this, consider the mortgage to be paid off when its value first becomes negative. A' = rA - 12p, A(0) = AoStep by Step Solution
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