Calculation of Interest / How to find Monthly Payment w/ Offset First Payment More options

[chrisclock]

I am attempting to find the monthly payment of a loan, for example a
car loan. I have found the formula P=(C*r*((1+r)^N))/(((1+r)^N)-1)
* ,
where C- Loan Amount; N-# of Payments ; r = ARP/ compounding
frequency ; and P-Payment.

[*Source:http://www.efunda.com/formulae/finance/loan_calculator.cfm]


Now this formula works find with the following assumptions. That our
first payment will always be 1 cyle into the loan. For example if we
are compounding monthly, then ths payment (P) will be the monthly
payment, which will be due one month after the start of the loan.


Now my question is, if I would like to change the date of first
payment, how would I go about doing this? Is there a formula
developed
for this type of situation?

 

[Jim Cone]

Both the VBA and Excel help files show a payment function ("pmt").
The last argument, "type", allows you to specify payments starting
at the beginning or end of the payment period...
"=PMT(rate,nper,pv,fv,type)"

You may also want to try the free Excel add-in "Calculate Payments".
Download from... http://www.realezsites.com/bus/primitivesoftware
No registration required.
--
Jim Cone
San Francisco, USA


<[email protected]>
wrote in message
I am attempting to find the monthly payment of a loan, for example a
car loan. I have found the formula P=(C*r*((1+r)^N))/(((1+r)^N)-1)
* ,
where C- Loan Amount; N-# of Payments ; r = ARP/ compounding
frequency ; and P-Payment.

[*Source:http://www.efunda.com/formulae/finance/loan_calculator.cfm]

Now this formula works find with the following assumptions. That our
first payment will always be 1 cyle into the loan. For example if we
are compounding monthly, then ths payment (P) will be the monthly
payment, which will be due one month after the start of the loan.

Now my question is, if I would like to change the date of first
payment, how would I go about doing this? Is there a formula
developed
for this type of situation?

 

[chrisclock]

Both the VBA and Excel help files show a payment function ("pmt").
The last argument, "type", allows you to specify payments starting
at the beginning or end of the payment period...
"=PMT(rate,nper,pv,fv,type)"

You may also want to try the free Excel add-in "Calculate Payments".
Download from...http://www.realezsites.com/bus/primitivesoftware
No registration required.
--
Jim Cone
San Francisco, USA

<[email protected]>
wrote in message
I am attempting to find the monthly payment of a loan, for example a
car loan. I have found the formula P=(C*r*((1+r)^N))/(((1+r)^N)-1)
* ,
where C- Loan Amount; N-# of Payments ; r = ARP/ compounding
frequency ; and P-Payment.

[*Source:http://www.efunda.com/formulae/finance/loan_calculator.cfm]

Now this formula works find with the following assumptions. That our
first payment will always be 1 cyle into the loan. For example if we
are compounding monthly, then ths payment (P) will be the monthly
payment, which will be due one month after the start of the loan.

Now my question is, if I would like to change the date of first
payment, how would I go about doing this? Is there a formula
developed
for this type of situation?

I am awaire of this excell function, but this funtion does not take
into account the date of the first payment? Any ideas on how this
should be accomplished?