PMT function?

[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?

 

[Teethless mama]

"Goal Seek" Perhaps. It's in the Tools menu

 

[Jim Cone]

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?

 

[rayteach]

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

 

[rayteach]

Thank you for your response but I cannot see how the Goal Seek function
allows me to achieve my desired result. Ray

 

[Jim Cone]

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

 

[rayteach]

Thank you so much. It is the perfect solution once you lay it out so nicely
for me. Thanks again.
--
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