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
|