PMT function?

  • Thread starter Thread starter rayteach
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rayteach

Excel XP. I want to modify the PMT function or find another function that
will allow me to see the results of a constant payment with a fixed interest
rate (what the PMT function does) but what the effect would be of adding an
additional $100.00 per month to the normal payment.
For example, over the period of a 5 year loan, how many fewer payments than
the 60 would the additional $100.00 per month achieve?
 
Look at the NPER function.
It returns the number of periods for an investment based on periodic,
constant payments and a constant interest rate.
--
Jim Cone
San Francisco, USA
http://www.realezsites.com/bus/primitivesoftware
(Excel Add-ins - download the free trial of the "Calculate Payment" add-in)



"rayteach"
wrote in message
Excel XP. I want to modify the PMT function or find another function that
will allow me to see the results of a constant payment with a fixed interest
rate (what the PMT function does) but what the effect would be of adding an
additional $100.00 per month to the normal payment.
For example, over the period of a 5 year loan, how many fewer payments than
the 60 would the additional $100.00 per month achieve?
 
Thank you for your response but I don't see how the NPER function goes beyond
the PMT. I could not see how to make addition payments using the NPER
function. Ray
 
Thank you for your response but I cannot see how the Goal Seek function
allows me to achieve my desired result. Ray
 
1. You know the number of payments required and the $ amount from the PMT function.
2. Add $100 to that payment and use the NPER function to
determine the new number of payments required.
3. Subtract number of payments in #2 from number of payments in #1.
'--
Sample data using PMT function...
Loan: $25,000
Interest rate: 6.00 %
Term: 5 years
Payments per year: 12
Number of payments: 60
Payment at end of period.
Payment: $483.32
Total payments: $28,999
--
Sample data using NPER function...
Loan: $25,000
Interest rate: 6.00 %
Term: 4 years
Payments per year: 12
Number of payments: 48.4 '<<<<<Result
Payment at end of period.
Payment: $583.32 '<<<<<$100 more
Total payments: $28,206
'--
Jim Cone
San Francisco, USA
http://www.realezsites.com/bus/primitivesoftware
(I used the Calculate Payments Excel add-in)




"rayteach"
wrote in message
Thank you for your response but I don't see how the NPER function goes beyond
the PMT. I could not see how to make addition payments using the NPER
function. Ray
 
Thank you so much. It is the perfect solution once you lay it out so nicely
for me. Thanks again.
--
ray


Jim Cone said:
1. You know the number of payments required and the $ amount from the PMT function.
2. Add $100 to that payment and use the NPER function to
determine the new number of payments required.
3. Subtract number of payments in #2 from number of payments in #1.
'--
Sample data using PMT function...
Loan: $25,000
Interest rate: 6.00 %
Term: 5 years
Payments per year: 12
Number of payments: 60
Payment at end of period.
Payment: $483.32
Total payments: $28,999
--
Sample data using NPER function...
Loan: $25,000
Interest rate: 6.00 %
Term: 4 years
Payments per year: 12
Number of payments: 48.4 '<<<<<Result
Payment at end of period.
Payment: $583.32 '<<<<<$100 more
Total payments: $28,206
'--
Jim Cone
San Francisco, USA
http://www.realezsites.com/bus/primitivesoftware
(I used the Calculate Payments Excel add-in)




"rayteach"
wrote in message
Thank you for your response but I don't see how the NPER function goes beyond
the PMT. I could not see how to make addition payments using the NPER
function. Ray
Click to expand...
 
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