How do I do an amortization schedule knowing the princ, int rate,.

C

cfspahn24

How to get an amortization schedule knowing principle, APR, and payment
amount? I want to know how long it will take to pay off using different pmt
amoynts.
 
B

Bruno Campanini

cfspahn24 said:
How to get an amortization schedule knowing principle, APR, and payment
amount? I want to know how long it will take to pay off using different
pmt
amoynts.
Click to expand...

Given:
C = Principle
P = Payment
i = interest
n = months or quarters or years, etc
(i must be related to n)


P - C i
Log -----------
P
n = ----------------------
1
Log ----------
1 + i

I don't know how/if Excel handles this formula.
For finacial calculations I do normally use
mathematical formulas.

Ciao
Bruno
 
G

Gary''s Student

Bruce's formula is correct. I am not sure if there is a direct formula that
returns period, but:


put 5 in A1 (years)
put 8% in B1 (rate)
put 100 in C1 (payment)
put 0 in D1 (type)
put =PV(B1/12,A1*12,-C1,0,0) in E1 (amount financed)

you will see $4,931.84 in E1. Since you want to calculate the years and not
the amount financed), then click on E1 and pull-down:

Tools > Goal Seek... and enter your desired amount inthe value field and A1
in the changing field.

You will now have the payoff time.
 
C

cfspahn24

Thank you gentlmen, you have been most helpful!

Gary''s Student said:
Bruce's formula is correct. I am not sure if there is a direct formula that
returns period, but:


put 5 in A1 (years)
put 8% in B1 (rate)
put 100 in C1 (payment)
put 0 in D1 (type)
put =PV(B1/12,A1*12,-C1,0,0) in E1 (amount financed)

you will see $4,931.84 in E1. Since you want to calculate the years and not
the amount financed), then click on E1 and pull-down:

Tools > Goal Seek... and enter your desired amount inthe value field and A1
in the changing field.

You will now have the payoff time.
Click to expand...
 
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