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R0bert Neville
 
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Default Loan Schedule with Balloon Payment

I am looking for an Excel worksheet example of a loan schedule with a
balloon payment at the end. My internet search has not found much on
the subject; and generally returns results about traditional loan
payment schedules. I want to create a worksheet rather than use a loan
calculator found on the web as well.

This request related to new automobile financing incentive plans
revolving around loans with balloon payment at the end. My mother is
in the market for a new car and she recently saw an AD with this
incentive option. An Excel solution will help me show the real costs
associated with the loan and change numbers as when the dealer changes
the options (apparently they never have the left from the
advertisement). I already created a traditional loan payment schedule
in Excel; so a balloon payment should not be far off. But I not
entirely familiar with the math portion behind these balloon payments.
Please let know how to create such a worksheet or the math behind
them.

 
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