Wardy
New Poster
Cash: $ 0.45
Posts: 2
Joined: 10 May 2005
|
| Loan Calculation? |
 |
|
Hi,
first time posting here so hello!
I'm after a bit of help that I'm sure is a doddle to you guys in here.
I'm after knowing the sum that is used to figure loan repayments out. I've used a few of the loan calculators online and they give me one answer but I just can't seem to figure it out myself on the calculator.
For example, say I have a loan for £3000 over 12 months and the rate is at 10% then I figure it out that I'd end up paying £3300 back, but the loan calculators figure it out as £3165 (with monthly payment of £263.75)
Can anyone give me some simple sums so I can use them to work it out myself instead of having to come online to do it. I did try at anotehr forum but have had no reply so maybe you guys here are a bit more clued up 
Cheers
Wardy
|
Tue May 10, 2005 3:16 pm |
|
|
extremist
Member
Cash: $ 2.37
Posts: 19
Joined: 15 Nov 2004
|
using a financial calculator:
load 3k as your Present Value (pv)
10 as your Interester Per Year (i/y)
set payments per year to 12
Set N to 12
Computer payments (pmt)
Answer: 263.7477 per month
Total over one year = 263.7477 X 12 = 3164.9724
Hope this helps!
|
|
Wed May 11, 2005 7:01 am |
|
|
Wardy
New Poster
Cash: $ 0.45
Posts: 2
Joined: 10 May 2005
|
Thanks for the reply extremist 
I don't have a financial calculator which is why I was after a simple step by step formula that I can do on an ordinary calculator (the calculator does have the bracket funnctions though).
Cheers
Wardy
|
|
Wed May 11, 2005 9:00 am |
|
|
extremist
Member
Cash: $ 2.37
Posts: 19
Joined: 15 Nov 2004
|
oh i am not sure how to do it on a regular calculator hehe, im too spoiled and i dont remember the formulas.
|
|
Wed May 11, 2005 3:03 pm |
|
|
BlankenshipFP
Money Talk Advisor
Cash: $ 79.56
Posts: 390
Joined: 05 Oct 2004
Location: Illinois
|
FYI - you can do this in Excel - type in
=pmt(rate,number of periods,present value, future value),
as in your case:
=pmt(.1/12,12,-3000,0).
The rate is .1/12 because it is a monthly rate, and the pv is negative since it is a debt.
Hope this helps.
Jim Blankenship, CFP®, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
|
|
Wed May 11, 2005 8:24 pm |
|
|
|
