Excel XP on WinXP

First let me say that maybe I just don't understand financial functions,
although I have done amortizations in the past.

I am having trouble understanding what is happening with the NPER function
recently.

Using the NPER function gave me disappointing results for a calulation I was
making. I decided to test the function ( and my use of it) against a known
value-- A current mortgage. Mortgage amt 50,000, rate 6.875% and term of 15
years with a monthly payment of $475.25. I used the formula =NPER(6.88%/12,
475.25, 50000, 0). This returned -82.56, which is a long way from the 180
monthly payments my mortgage is scheduled to include.

There must be an error in my execution of the NPER function, but I can't
seem to see where its at. Or am I totally misunderstanding the purpose of
thsi function.

Any light you can shed on this for me will be greatly appreciated.

Thanks to all participants in the Excel Community

=NPER(0.06875/12, -475.25, 50000, 0)
Returns 161.6 payments.
--
Jim Cone
Portland, Oregon USA
http://www.realezsites.com/bus/primitivesoftware
(Excel Add-ins - free trial of "Calculate Payments" - no registration)



"JR Hester"
wrote in message
Excel XP on WinXP

First let me say that maybe I just don't understand financial functions,
although I have done amortizations in the past.
I am having trouble understanding what is happening with the NPER function
recently.

Using the NPER function gave me disappointing results for a calulation I was
making. I decided to test the function ( and my use of it) against a known
value-- A current mortgage. Mortgage amt 50,000, rate 6.875% and term of 15
years with a monthly payment of $475.25. I used the formula =NPER(6.88%/12,
475.25, 50000, 0). This returned -82.56, which is a long way from the 180
monthly payments my mortgage is scheduled to include.

There must be an error in my execution of the NPER function, but I can't
seem to see where its at. Or am I totally misunderstanding the purpose of
thsi function.
Any light you can shed on this for me will be greatly appreciated.
Thanks to all participants in the Excel Community

Thanks so much for the reminder, Those little things keep tripping me up.
That little minus sign made all the difference. Guess my mind must be on
holiday today even if my body is not!

"Jim Cone" wrote:


=NPER(0.06875/12, -475.25, 50000, 0)
Returns 161.6 payments.
--
Jim Cone
Portland, Oregon USA
http://www.realezsites.com/bus/primitivesoftware
(Excel Add-ins - free trial of "Calculate Payments" - no registration)



"JR Hester"
wrote in message
Excel XP on WinXP

First let me say that maybe I just don't understand financial functions,
although I have done amortizations in the past.
I am having trouble understanding what is happening with the NPER function
recently.

Using the NPER function gave me disappointing results for a calulation I was
making. I decided to test the function ( and my use of it) against a known
value-- A current mortgage. Mortgage amt 50,000, rate 6.875% and term of 15
years with a monthly payment of $475.25. I used the formula =NPER(6.88%/12,
475.25, 50000, 0). This returned -82.56, which is a long way from the 180
monthly payments my mortgage is scheduled to include.

There must be an error in my execution of the NPER function, but I can't
seem to see where its at. Or am I totally misunderstanding the purpose of
thsi function.
Any light you can shed on this for me will be greatly appreciated.
Thanks to all participants in the Excel Community

First, Present value and payments must have opposite signs.

It seems to me that your known values are not correct.

Both with Exel's NPER function and with a monthly table, my result is that the loan will have been paid in 161.6009757 months.
180 months require a monthly payment of 445.9272.

--
Kind regards,

Niek Otten
Microsoft MVP - Excel



"JR Hester" wrote in message ...
| Excel XP on WinXP
|
| First let me say that maybe I just don't understand financial functions,
| although I have done amortizations in the past.
|
| I am having trouble understanding what is happening with the NPER function
| recently.
|
| Using the NPER function gave me disappointing results for a calulation I was
| making. I decided to test the function ( and my use of it) against a known
| value-- A current mortgage. Mortgage amt 50,000, rate 6.875% and term of 15
| years with a monthly payment of $475.25. I used the formula =NPER(6.88%/12,
| 475.25, 50000, 0). This returned -82.56, which is a long way from the 180
| monthly payments my mortgage is scheduled to include.
|
| There must be an error in my execution of the NPER function, but I can't
| seem to see where its at. Or am I totally misunderstanding the purpose of
| thsi function.
|
| Any light you can shed on this for me will be greatly appreciated.
|
| Thanks to all participants in the Excel Community

Thank you finding the error of my way. ANd for your quick response, that
saved me an embarrasing moment later today.

"Niek Otten" wrote:

First, Present value and payments must have opposite signs.

It seems to me that your known values are not correct.

Both with Exel's NPER function and with a monthly table, my result is that the loan will have been paid in 161.6009757 months.
180 months require a monthly payment of 445.9272.

--
Kind regards,

Niek Otten
Microsoft MVP - Excel



"JR Hester" wrote in message ...
| Excel XP on WinXP
|
| First let me say that maybe I just don't understand financial functions,
| although I have done amortizations in the past.
|
| I am having trouble understanding what is happening with the NPER function
| recently.
|
| Using the NPER function gave me disappointing results for a calulation I was
| making. I decided to test the function ( and my use of it) against a known
| value-- A current mortgage. Mortgage amt 50,000, rate 6.875% and term of 15
| years with a monthly payment of $475.25. I used the formula =NPER(6.88%/12,
| 475.25, 50000, 0). This returned -82.56, which is a long way from the 180
| monthly payments my mortgage is scheduled to include.
|
| There must be an error in my execution of the NPER function, but I can't
| seem to see where its at. Or am I totally misunderstanding the purpose of
| thsi function.
|
| Any light you can shed on this for me will be greatly appreciated.
|
| Thanks to all participants in the Excel Community