"Shaun" wrote:
I am using a Amortization Schedule template from Microsoft Office online.
While this template is helpful for cases of fixed rate of interest over
the
period, I was looking for a template which would allow for variable rates
of
interest.

You might be able to modify the existing template relatively easily. But
without knowing the specific template, it is difficult to offer specific
guidance.

I prefer to develop my own amortization schedule from scratch. It is not
difficult. And it avoids the pitfalls in the MS templates that I have
looked at. In one template, the monthly payment is not rounded as needed.
In another template, the form of the schedule is not what I want.

If it helps, the payment for the first 12 months can be computed by
PMT(8%/12,13*12,-2500000). That should be rounded by either
ROUND(payment,2) or ROUND(payment,0), whichever is appropriate.

The remaining balance after 12 months can be computed by
FV(8%/12,12,payment,-2500000).

The payment for the remaining 12 years can be computed by
PMT(10%/12,12*12,-fv), where "fv" is the remaining balance after 12 months
as computed above. Again, that should be rounded appropriately.

Note that these formulas assume the monthly interest rate is the annual rate
divided by 12. That is appropriate for the US and much of the world. But
Canada and the UK do things differently, according to
http://support.microsoft.com/kb/294396/en-us.

The formulas also assume that the monthly payment is indeed computed in the
manner described above. Although that is common, the lender is not
obligated to do it that way, at least not in the US.


----- original message -----

"Shaun" wrote in message
...
I am using a Amortization Schedule template from Microsoft Office online.
While this template is helpful for cases of fixed rate of interest over
the
period, I was looking for a template which would allow for variable rates
of
interest.
My current loan amount is 2500000.
Annual Interest Rate for first 12 months is 8% and for the rest period
would
be 10%. Loan period 13 years, Number of payments per year 12.
Please help me out here.