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#1
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reverse principle calculation
Is there a way to enter a formula to calculate what the original
principle amount is if I know the other variables? Date Invoice 1/1/04 Date of Period 1/1/05 '366 days Interest Rate 18%/Year 1/1/05 balance of Principle +Interest 1000.00 What is the original principle and formula to calculate???? -Demi |
#2
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reverse principle calculation
It depends on how the interest is calculated. If it is simple interest, then
it is =1000/(1+.18) (assumes one year) If the interest compounds (assume monthly here), then you use =1000/( (1+i/12)^12 ) "Demi" wrote: Is there a way to enter a formula to calculate what the original principle amount is if I know the other variables? Date Invoice 1/1/04 Date of Period 1/1/05 '366 days Interest Rate 18%/Year 1/1/05 balance of Principle +Interest 1000.00 What is the original principle and formula to calculate???? -Demi |
#3
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reverse principle calculation
Another way
=PV(18%,1,,-1000) for simple interest and =PV(18%/12,12,,-1000) for compounded monthly -- Regards, Peo Sjoblom http://nwexcelsolutions.com "Duke Carey" wrote in message ... It depends on how the interest is calculated. If it is simple interest, then it is =1000/(1+.18) (assumes one year) If the interest compounds (assume monthly here), then you use =1000/( (1+i/12)^12 ) "Demi" wrote: Is there a way to enter a formula to calculate what the original principle amount is if I know the other variables? Date Invoice 1/1/04 Date of Period 1/1/05 '366 days Interest Rate 18%/Year 1/1/05 balance of Principle +Interest 1000.00 What is the original principle and formula to calculate???? -Demi |
#4
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reverse principle calculation
Thank you the PV formula worked like a champ, since it was simple
interest compounded monthly I was able to use this to calculate the first date- lastdate etc. thanks |
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