I have a loan that I’m trying to calculate which is better 26 partial payments or 12 full payments. I know the 2 extra payments should reduce my overall loan amount.

I’m trying to calculate the remaining balance after 12 months using the following excel function (FV)

FV(8.544%/12,12,250.08,-16782.92) this value results in 15,153.05 which is what I expected.

However, when I use the same logic for 26 partial payments

FV(8.544%/12,26,125.04,-16782.92) I get 16,625.14