John, Ron, Joeu2004 and Dana, Thank you for responding to my question. I try
each and every equation, they all worked perfectly. Thanks especially
joeu2004 for spending your time explaining in detail

" wrote:

Lutrinh wrote:
Hi, can anyone tell me which fonction should I use to calculate a loan of
100,000$ with an interest Rate of =5.15% (0.4291) for 25 years (300) and pmt
= -593.36.
Question: after 12 payments How much do I still own the bank? The answers is
$97982.46 by using my calculator but I don't know which fonction do I need to
use in Microsoft Excel .

Ostensibly:

=fv(5.15%/12, 12, 593.36, -100000)

But that evaluates to 97982.50 instead of 97982.46. A small
difference; but it might be instructive to understand the reason.

It appears that you might have used the exact payment amount, which in
Excel is computed by:

=pmt(5.15%/12, 300, -100000)

That evaluates to 593.3626 (rounded). Substituting:

=fv(5.15%/12, 12, pmt(5.15%/12, 300, -100000), -100000)

evaluates to 97982.4681 (rounded). I would round that to 97982.47; but
you might have truncated or rounded down to 97982.46.

Since the payment is "real money", I think it is more correct to use
the actual currency amount, namely 593.36 -- or whatever payment amount
the bank chooses arbitrarily.

Caveat: Your estimate might never exactly match a bank's amortization
schedule because there are a number of ways of dealing with "rounding
error" and because some lenders compound interest on a daily basis
between payments. Over 300 months, the difference can be sizable.