Help needed on formulas

[busterbrown885]

Hi,
New to excel, need help in developing formulas for the following
examples

1. Payments of $440,000 semi annual for 20 years or 8million dollars
now, what is the rate of interest used to arrive at 8mm?

2. Payment of 8mm now or using a rate of 7% what should the semi annual
payments be for 20 years to equal the value of $8million?

Thank you for your help

 

[mangesh_yadav]

1. Payments of $440,000 semi annual for 20 years or 8million dollars

now, what is the rate of interest used to arrive at 8mm?

assuming 8m is the present value, use
=(1+RATE(20*2,440000,-8000000))^2-1
gives the result: 9.38%

2. Payment of 8mm now or using a rate of 7% what should the semi

annual payments be for 20 years to equal the value of $8million?

=PMT(7%/2,20*2,-8000000)
result: 374618

Mangesh

 

[Guest]

why post the same question on two forums?.There are answers in the general
forum too.The same people generally read all forums