Ann has attended:
Excel Advanced course
Excel Advanced - Formulas & Functions course
Excel PMT Tool
Using the PMT tool with a £40k loan at 6% over 3 years, how can I force capital repayments of £5k / £15k / £20k in each year while charging interest on the entire depreciating loan? We want to charge our client in fixed amounts monthly (albeit changing the amount in year 2 and 3).
I managed by working in several stages and combining the results but wondered if there was a direct route to this which I could use if the problem arises again.
RE: Excel PMT Tool
Hi Ann
Thanks for getting in touch. I've combed through the financial functions in Excel and I can't find a built-in function that calculates PMT with forced repayments at each stage.
I suspect the method you've gone for is the right one; a partitioned model that spreads the payments and combines them at the end.
To try and give you a hand, I found a template that Microsoft provide for irregular loan calculations. They came up with it, not me so I can't vouch for it! It seems to be customisable to your needs though. Below is the link for Microsoft's file, and I've attached my estimate of how you could create your own.
http://office.microsoft.com/en-us/templates/biweekly-mortgage-payment-amortization-TC001056618.aspx?CategoryID=CT011815531033& ;AxInstalled=1
I hope this gives you a suitable template to build from.
Kind regards
Gary Fenn
Microsoft Office Specialist Trainer
Tel: 0207 987 3777
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Loan Calculator.xlsx
