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monthly payment formula example. Consider a loan with an annual interest rate of 5 a 2-year duration and a present value amount borrowed of 20000. The annual rate is calculated to be 505 using the formula i2000416471122-1.
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We make monthly payments so we use 512 for Rate and 212 for Nper total number of periods. Using the RATE formula in Excel the rate per period r for a Canadian mortgage compounded semi-annually of 100000 with a monthly payment of 58445 amortized over 25 years is 041647 calculated using rRATE2512-58445100000. With all the known components in place lets get to the most interesting part - loan amortization formulas.
You also need the amount of the monthly payment amount.
R 5100 005 decimal. Pv required - the present value ie. The total amount that all future payments are worth now. The above function returns PMT as 324020.
