Reducing balance
 

Could anyone help me to calculate the monthly payment for the below
details:

Loan taken: 43000
interest rate: 4% based on reducing balance
years: 7 years

tqvm! =).

Reducing balance
 

Why reinvent the wheel?
Use an existing Template thats probably on your computer - Do a search for
"Loan Amortization Schedule".


" wrote:

Could anyone help me to calculate the monthly payment for the below
details:

Loan taken: 43000
interest rate: 4% based on reducing balance
years: 7 years

tqvm! =).

Reducing balance
 

On Mar 8, 8:23*pm, wrote:
Could anyone help me to calculate the monthly
payment for the below details:
Loan taken: 43000
interest rate: 4% based on reducing balance
years: 7 years

=pmt(4%/12,7*12,-43000,0)

That presumes the loan should be reduced to zero after 7 years. If
there is a balloon payment, replace zero (last argument) with the
balloon payment as a positive number.

Caveat: the PMT result should be rounded up (ROUNDUP) to at least the
smallest currency unit (cents in the US). Since you did not mention
what currency, I did not want to make presumptions.

If you do round up PMT, the last payment is likely to be less than
normal. That last payment amount can be computed by:

=fv(4%/12,7*12-1,pmt,-43000)*(1+4%/12)

where "pmt" is the rounded-up monthly payment. That formula should
rounded or rounded up, depending on the lender's policy.

Reducing balance
 

A2=loan
B2=rate
C2=year
Then monthly payment
=(A2*B2*C2+A2)/(12*C2)

Hope this helps€¦.


Chris
------
Convert your Excel spreadsheet into online calculator.
http://www.spreadsheetconverter.com

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