How do I calculate the interest payment manually (without usin
Glad it helped. Thanks for the feedback.
--
Regards,
Fred
"Grd" wrote in message
...
Thanks Fred,
Now had a chance to try this. It works as you describe. Excellent
S
"Fred Smith" wrote:
Canadian mortgages are compounded semi-annually. As with all financial
functions, you need to calculate the periodic interest rate. Then all the
functions will work.
Let's suppose you make monthly payments, and the quoted interest rate is 5%.
As
Canadian mortgages are compounded semi-annually, you know this is actually
2.5%
every six months. If you borrowed $100 with an interest rate of 2.5%, you
would
owe $102.50 at the end of six months. But your payments are monthly. What you
need to know is: what monthly interest rate will turn $100 into $102.50 in
six
months? Use the rate function for this, as in:
=rate(6,0,-100,102.50)
Or more generally:
=rate(6,0,-1,1+i/2)
Now use this rate in all your financial functions.
--
Regards,
Fred
"Grd" wrote in message
...
Hi there,
I used IPMT but I'm Canadian and it doesn't work for Canada so I basically
need to do an amortization schedule and I have no clue the formulas needed
to
do this manually.
I fugure you need a principle column, interest column, monthly payment
column.
I need to figure out the compounded interest.
Any guidance will be helpful
Thanks
Suzanne
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