Excel,Mortgage,Payment,Formula computer Excel Mortgage Payment Formula
Gone are those times when the companies and the organisations didn't need a hi-tech system to handle them. Owing to the considerable increase in the business sector and thus, an enormous increase in the complexity of the organisational struc ----------------------------------------------------------Permission is granted for the below article to forward,reprint, distribute, use for ezine, newsletter, website,offer as free bonus or part of a product for sale as longas no changes a
Normal 0 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable{mso-style-name:"Table Normal";mso-tstyle-rowband-size:0;mso-tstyle-colband-size:0;mso-style-noshow:yes;mso-style-parent:"";mso-padding-alt:0cm 5.4pt 0cm 5.4pt;mso-para-margin:0cm;mso-para-margin-bottom:.0001pt;mso-pagination:widow-orphan;font-size:10.0pt;font-family:"Times New Roman";mso-ansi-language:#0400;mso-fareast-language:#0400;mso-bidi-language:#0400;}1. Mortgage repayment calculations are possible is Excelusing the PMT function. The PMT functionhas the following arguments: Rate this is interest rate on the mortgage loan divided by12 Nper this is the term of the mortgage or the number of monthlyrepayments you will make. For example with a 25 year mortgage you would make 12multipled by 25 monthly repayments.PV (present value) - is the mortage amount the amount youhave borrowed, expressed as a negative value.FV - you can leave blank. FV stands for future value. As the future of the loan when it has berepaid will be zero and zero is the default for this argument it can be leftempty.Type here you state whether you will make the payment atthe beginning or at the end of each month, type 1 if at the beginning or 0 ifat the end. Sorry no option for halfwaythrough the month. 2. An example. Johntakes out a £250,000 mortgage over 25 years with an annual interest rate of4.5%. He will make his mortgage paymenton the 1st of each month. Rate would be 4.5%/12Nper would be 25*12PV would be -250000Type would be 1 3. To practice this example in Excel, in a blank spreadsheetenter the following data starting in A1. i) Rate goes in A1, 4.5% goes in B1 and so on for each row. Rate 4.5%Term 25Mortgage 250000Repayment ii) Click into cell B4 this is where we will calculate themonthly repayment iii) Now click on the fx button on the Excel formula barjust above the spreadsheets column headers. This will open the Insert Functiondialogue box. In the search box type PMT and then click Go. Select PMT from the results list below and then click OK In the Rate box type B1/12In the Nper box type B2*12In the Pv box type B3Leave the FV box emptyIn the Type box type 1 iv) Click OK Youranswer should be 1384.39
Excel,Mortgage,Payment,Formula