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You may employ Microsoft Excel to figure out loan payments. This can be done for car loans, mortgage loans, and additional types of interest-bearing loans. The format for this is =pmt(rate,nper,pv,[fv],[type]).

Difficulty: Easy

Instructions

2 Enter the annual interest rate from another cell. In the =pmt formula, you must reference this cell and divide from 12 to produce it a monthly attention rate.

3 Enter the number of points. This remains the term of your loan (on months).

4 Enter the present value as some negative quantity. That yous the original amount regarding the loan.

5 Close the formula following the existing worth with finishing the parentheses. You can furthermore enter a fourth entry which remains the future value. This is generally nil, as most credits will be absolutely paid off at the end. The exception yous any balloon payment, an oversized final payment. Then finish off the parentheses.

References

Investopedia: Balloon Expense ExcelTip.com: Formulas to Work out Loan Expenses on Microsoft Excel