Financial function - calculating loans with deferred payments

  • Thread starter Thread starter Paul 022
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Paul 022

Anyone know of a way to calculate the repayment schedule for a loan with
fixed interest rate and term, and a deferred payment schedule? For example,
figuring the payments on a 40-year loan for the amount of $10 million at 6%,
if the payments were only made in years 26 through 40. Functions in Excel,
from what I see, require payments to begin in year 1. I can use the NPV
function to try to get in the ballpark, but that's a slow, interative process.

Thanks for the help.
 
Hi Paul

Would it not be the same as calculating the loan over 15 years, but starting
with a principal which was
10,000,000*(1.06)^25

i.e. by the time payments begin, the accrued Loan = Interest would be
$42,918,707.20
Paying this off over 15 years at 6% interest would give annual payments of
$3,389,401.08
 
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