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Thread: help on loan amortization

  1. #1

    Exclamation help on loan amortization



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    Hi
    For a while now i am just stuck on preparing my loan amortization table with prepayment option.Need some help.I want my "PMT" to change with every prepayment amount I enter for the balance loan period ,and the loan PMT before the prepayent must remain the same Please reply
    Manav

  2. #2
    Magician Hercules1946's Avatar
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    Mar 2013
    Location
    York, England
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    Excel Version
    2010
    Hello
    Im a bit confused by what your saying. It sounds like you have a total amount to repay that needs to include interest, and you also know what the repayment period is. If this is correct, then you need to calculate the following:
    Principal (P) = Gross Borrowing - Prepayment or Deposit.
    Interest Rate = i
    No of payments = n

    Then, the payment amount is:


    P (i + ( i )
    ((1 + i)^n) - 1 )

    Hope that makes sense with the limited fonts available.

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