Fixed & Reducing Balance Loan Calculation.

Hi.

Could anyone, please guide me following two questions.

Loan Calculation For

Fixed Annual Interest Rate
Reducing Balance Annual Interest Rate

Prinicipale Amount : 800,000
Profit Rate: 5.9 % Per Anum
Years: 20

Advise formula for both type of calculation, to know installment per month
or per year basis.

Regards.

Assad

On Nov 10, 10:51 pm, Assad > wrote:
> Could anyone, please guide me following two questions.
> Loan Calculation For
> Fixed Annual Interest Rate
> Reducing Balance Annual Interest Rate
>
> Prinicipale Amount : 800,000
> Profit Rate: 5.9 % Per Anum
> Years: 20
>
> Advise formula for both type of calculation, to know installment per month
> or per year basis.

If you make monthly payments __and__ we are talking about a loan that
is amortized similar to US loans (specifically, not Canadian loans),
the minimum monthly payment can be determined by the following,
assuming a monetary system similar to the US dollar (i.e. with the
smallest coin equal to 1/100 of the currency unit):

=roundup(pmt(5.9%/12, 20*12, -800000), 2)

But please note that different countries might compute the monthly
rate (he 5.9%/12) differently. For example, I have noticed that
another method is used in the UK, at least according to some lenders'
web sites.

As for a per-year basis, I am not quite sure what you are asking. If
you make monthly payments, obviously you pay 12 times that in a year.
If you make annual payments (surprise!), then with all the
aforementioned assumptions, the annual payment would be:

=roundup(pmt(5.9%, 20, -800000), 2)

Caveats:

(1) Some lenders might permit rounding down. And some lenders prefer
to round up or down to a "dollar" or whatever the currency unit of the
region is.

(2) In rare circumstances, rounding up (usually to a much higher
degree, for example 10s of "dollars") might result in fewer
payments. You can compute the number of payments as follows (for
monthly payments):

=roundup(nper(5.9%/12, p, -800000), 0)

(3) Rounding the payment will usually result in a somewhat different
last payment. You can determine the last payment by the following
(for monthly payments):

=fv(5.9%/12, n - 1, p, -800000)*(1+5.9%/12)

where "p" is the rounded monthly payment computed above and "n" is the
number of periods computed in #2 or simply 20*12.

HTH.

Thanks !

Much appreciated...

Assad

"joeu2004" wrote:

> On Nov 10, 10:51 pm, Assad > wrote:
> > Could anyone, please guide me following two questions.
> > Loan Calculation For
> > Fixed Annual Interest Rate
> > Reducing Balance Annual Interest Rate
> >
> > Prinicipale Amount : 800,000
> > Profit Rate: 5.9 % Per Anum
> > Years: 20
> >
> > Advise formula for both type of calculation, to know installment per month
> > or per year basis.
>
> If you make monthly payments __and__ we are talking about a loan that
> is amortized similar to US loans (specifically, not Canadian loans),
> the minimum monthly payment can be determined by the following,
> assuming a monetary system similar to the US dollar (i.e. with the
> smallest coin equal to 1/100 of the currency unit):
>
> =roundup(pmt(5.9%/12, 20*12, -800000), 2)
>
> But please note that different countries might compute the monthly
> rate (he 5.9%/12) differently. For example, I have noticed that
> another method is used in the UK, at least according to some lenders'
> web sites.
>
> As for a per-year basis, I am not quite sure what you are asking. If
> you make monthly payments, obviously you pay 12 times that in a year.
> If you make annual payments (surprise!), then with all the
> aforementioned assumptions, the annual payment would be:
>
> =roundup(pmt(5.9%, 20, -800000), 2)
>
> Caveats:
>
> (1) Some lenders might permit rounding down. And some lenders prefer
> to round up or down to a "dollar" or whatever the currency unit of the
> region is.
>
> (2) In rare circumstances, rounding up (usually to a much higher
> degree, for example 10s of "dollars") might result in fewer
> payments. You can compute the number of payments as follows (for
> monthly payments):
>
> =roundup(nper(5.9%/12, p, -800000), 0)
>
> (3) Rounding the payment will usually result in a somewhat different
> last payment. You can determine the last payment by the following
> (for monthly payments):
>
> =fv(5.9%/12, n - 1, p, -800000)*(1+5.9%/12)
>
> where "p" is the rounded monthly payment computed above and "n" is the
> number of periods computed in #2 or simply 20*12.
>
> HTH.
>
>

thnx for the EMI calculation... I need to find out the interest portion and
principal portion for each month using reducing balance.. would be gr8 if you
can provide the formula...

"joeu2004" wrote:

> On Nov 10, 10:51 pm, Assad > wrote:
> > Could anyone, please guide me following two questions.
> > Loan Calculation For
> > Fixed Annual Interest Rate
> > Reducing Balance Annual Interest Rate
> >
> > Prinicipale Amount : 800,000
> > Profit Rate: 5.9 % Per Anum
> > Years: 20
> >
> > Advise formula for both type of calculation, to know installment per month
> > or per year basis.
>
> If you make monthly payments __and__ we are talking about a loan that
> is amortized similar to US loans (specifically, not Canadian loans),
> the minimum monthly payment can be determined by the following,
> assuming a monetary system similar to the US dollar (i.e. with the
> smallest coin equal to 1/100 of the currency unit):
>
> =roundup(pmt(5.9%/12, 20*12, -800000), 2)
>
> But please note that different countries might compute the monthly
> rate (he 5.9%/12) differently. For example, I have noticed that
> another method is used in the UK, at least according to some lenders'
> web sites.
>
> As for a per-year basis, I am not quite sure what you are asking. If
> you make monthly payments, obviously you pay 12 times that in a year.
> If you make annual payments (surprise!), then with all the
> aforementioned assumptions, the annual payment would be:
>
> =roundup(pmt(5.9%, 20, -800000), 2)
>
> Caveats:
>
> (1) Some lenders might permit rounding down. And some lenders prefer
> to round up or down to a "dollar" or whatever the currency unit of the
> region is.
>
> (2) In rare circumstances, rounding up (usually to a much higher
> degree, for example 10s of "dollars") might result in fewer
> payments. You can compute the number of payments as follows (for
> monthly payments):
>
> =roundup(nper(5.9%/12, p, -800000), 0)
>
> (3) Rounding the payment will usually result in a somewhat different
> last payment. You can determine the last payment by the following
> (for monthly payments):
>
> =fv(5.9%/12, n - 1, p, -800000)*(1+5.9%/12)
>
> where "p" is the rounded monthly payment computed above and "n" is the
> number of periods computed in #2 or simply 20*12.
>
> HTH.
>
>

On Sunday, November 11, 2007 12:21:00 PM UTC+5:30, Assad wrote:
> Hi.
>
> Could anyone, please guide me following two questions.
>
> Loan Calculation For
>
> Fixed Annual Interest Rate
> Reducing Balance Annual Interest Rate
>
> Prinicipale Amount : 800,000
> Profit Rate: 5.9 % Per Anum
> Years: 20
>
> Advise formula for both type of calculation, to know installment per month
> or per year basis.
>
> Regards.
>
> Assad