ex1ch6

# ex1ch6 - 6 \$2.03 \$405.00 \$0.00 P = 2400 A = 2400(A/P 0.5 6...

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Spreadsheet Example, Chapter 6, Page 222 New furniture, 6 month financing at 6 percent per annum 2400 Initial balance 0.50% I 6 N \$407.03 Payment Principal Ending Month Interest Payment Balance 0 \$2,400.00 1 \$12.00 \$395.03 \$2,004.97 2 \$10.02 \$397.00 \$1,607.97 3 \$8.04 \$398.99 \$1,208.98 4 \$6.04 \$400.98 \$807.99 5 \$4.04 \$402.99 \$405.00 6 \$2.03 \$405.00 \$0.00 Totals: \$42.17 \$2,400.00 1. Take ending balance from preceding period (D8). 2. Multiply by interest rate (A2) to determine the amount of interest that will be charged on D8 during the month. 3. Subtract the amount of interest (B9) from the monthly payment to determine how much of the payment goes to principal 4. Continue until the loan is completely amortized. Principal Ending Month Interest Payment Balance 0 2400 1 \$12.00 \$395.03 \$2,004.97 2 \$10.02 \$397.00 \$1,607.97 3 \$8.04 \$398.99 \$1,208.98

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4 \$6.04 \$400.98 \$807.99 5 \$4.04 \$402.99 \$405.00

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Unformatted text preview: 6 \$2.03 \$405.00 \$0.00 P = 2400 A = 2400(A/P, 0.5%, 6) = 2400(0.1696) = \$407.03 The Formulae Used at Left Principal Month Interest Payment 1 =\$A\$4*D10 =\$A\$6-B11 2 =\$A\$4*D11 =\$A\$6-B12 3 =\$A\$4*D12 =\$A\$6-B13 4 =\$A\$4*D13 =\$A\$6-B14 5 =\$A\$4*D14 =\$A\$6-B15 6 =\$A\$4*D15 =\$A\$6-B16 l (C9). =IPMT(I, t, N, -P) =PPMT(I, t, N, -P) Principal Month Interest Payment 1 =IPMT(0.5%,1,6,-2400) =PPMT(0.5%,1,6,-2400) 2 =IPMT(0.5%,2,6,-2400) =PPMT(0.5%,2,6,-2400) 3 =IPMT(0.5%,3,6,-2400) =PPMT(0.5%,3,6,-2400) 4 =IPMT(0.5%,4,6,-2400) =PPMT(0.5%,4,6,-2400) 5 =IPMT(0.5%,5,6,-2400) =PPMT(0.5%,5,6,-2400) 6 =IPMT(0.5%,6,6,-2400) =PPMT(0.5%,6,6,-2400) Ending Balance =A3 =D10-C11 =D11-C12 =D12-C13 =D13-C14 =D14-C15 =D15-C16 Ending Balance =A3 =D32-C33 =D33-C34 =D34-C35 =D35-C36 =D36-C37 =D37-C38...
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## This note was uploaded on 07/29/2011 for the course EGN 3612 taught by Professor Staff during the Fall '09 term at UNF.

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ex1ch6 - 6 \$2.03 \$405.00 \$0.00 P = 2400 A = 2400(A/P 0.5 6...

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