I have just read the original post again, and I can see a bit which I did not read the first time:
This makes things a lot easier, and is not like a mortgage repayment because that is based upon the assumption
that repayments will be made each month which are taken off the loan (well it is in the case I was thinking of).
If I am understanding things correctly you are supposed to be doing something like this:
Let A = 200000 (The amount of the original loan.)
Let i = 14/(12 * 100)
So i = 0.01166666667 (to the accuracy of a calculator)
The extra division by 100 is to convert a percentage to a decimal.
The division by 12 is to convert into an amount per month.
(Strictly speaking the 12th power root should be taken, but appearently in USA conventions this is not
how it is done. Instead it is divided by 12 for simplicity and they do not worry about the fact that this
raised to the power of 12 is not the same when added to 1 and then 1 is subtracted at the end if you
see what I mean. Compare 1.01166666667^12 to 1.14 they are not the same.)
So if I add 1 to the value of i to represent adding 100%
F = i + 1
F = 1.01166666667
My variable of F is supposed to be the factor of increase in the amount owed per month of compounding.
Using my interpretation, and this is the bit that I do not know whether it is correct, we should do this:
Where n is the number of months in which interest is accumulated assuming no money is paid back.
I am getting: 430032.30
This assumes that there are n=66 months of accumulation. (Not sure whether this is correct.)