Given my understanding of the question, try the following.
Assume you are loaning/borrowing $20,000 for 5 years at 6%. The payment for
this loan is:
=pmt(6%/12,5*12,20000) or $386.66/month.
Now you have to pay an incentive of $1000 to get loan, so you are really
borrowing 19,000 or loaning 21,000, but the payments stay the same. To
calculate the real APR of this loan, use the RATE function, as in:
=rate(periods, pmt(rate,periods,loan), loan+incentive)
Depending on whether you are the lender or borrower, you may have to change
the sign on some of the above fields.
--
Regards,
Fred
Please reply to newsgroup, not e-mail
Liz said:
I'm looking for a function that I can input a loan dollar amount, term of
loan, & APR. Then I will input a incentive that is paid out for the loan.
I want a way to show the adjusted APR of the loan.
