Hello:

The problem can be solved as a straight present value problem. First
take the present value of the $100 for six months which is $576.15,
then bring that back to period zero, $406.25. Now take the $100,000 -
406.25 = 99,953.75. Now find the payment over 30 month to
amortize that amount, = $3,956.47. This all assumes that you want
the effective IRR to be 15% annually, which is .011714917 etc per month.
If you want a nominal rate of 15% then you would use .0125 per month
which would change all of the above answers somewhat.

Here is the spreadsheet setup: (The labels are in A1:A10
the values are in B1:B10 and intermediate values in C7:C8)


Months 36
IRR 0.15
Loan 100,000.00
Last 6
Amount 100
Net 30
Monthly 0.011714917 1.011714917
pv ($406.25) ($576.15)
Net 99,593.75
PMT ($3,956.47)

Here is the formula view for the same cells

Months 36
IRR 0.15
Loan 100000
Last 6
Amount 100
Net =B1-B4
Monthly =C7-1 =(1+B2)^(1/12)
pv =PV(B7,B4,B5)/(1+B7)^B6 =PV(B7,B4,B5)
Net =B3+B8
PMT =PMT(B7,B6,B9)

Pieter Vandenberg


Luqman wrote:
: You very well understood my question, I just used that in Excel, and it
: really worked out.

: However, do you know any function of Excel which could do the same thing
: which Goal Seek is doing.

: I don't want users to use Goal Seek.

: Best Regards,

: Luqman



: "Don" wrote in message
: ...
: Luqman,
:
: I don't know about a quadratic equation, but a "Goal seek" would do it, if
: you have an amorization shcedule set up.
: On a $100,000 loan at 15%, for 36 months, with the last 6 cash flows =
: $100, the first 30 cash flows would be $4,001.95.
:
: I sent you a workbook using the e-mail address you provided.
:
: Don
:
:
:
: "Luqman" wrote in message
: ...
: Say, I want to give an amount of $100,000 as a Loan on 15% IRR for 36
: Months, if last 6 instalments/cash flows are mentioned in Amortization
: Schedule say $100/=, how can I calculate the 1st 30 instalments/cash
: flows.
:
: Some one told me that I have to use quadratic equation in Excel, but I
: don't know how to use it, any idea please ?
:
: Best Regards,
:
: Luqman
:
:
:
: