Interest Only Loans & Payments

[Guest]

I want to calculate the LOAN AMOUNT for an Interest Only Loan, based on a
given RATE and PAYMENT.

My trouble is Excel doesn't like calculating a PV formula where FV=PV, which
is understandable.

Are there any suggestions?

 

[Guest]

I believe that for all of the financial functions you might be interested in,
you'd need to know either the beginning or ending loan balance.

For what you're looking for, wouldn't you just need to divide the payment by
the periodic interest rate to determine the principal?

Example:
$1,000 interest-only loan, paid monthly

Pmt = Prin x Rate
Pmt =$1000 x (0.12/12)
Pmt = $10

Prin = Pmt / Rate
Prin = $10 / (12%/12)
Prin = $1000

Does that help?

 

[Guest]

Right,

Obviously my basic math skills need a tune-up. Thanks for your help, Ron.