Need Help With Financial Formulas

[Edwin G. Castro]

I'd like to calculate payments to pay off a "loan" which calculates
interest daily. I make monthly payments. I'd like to vary the total
number of payments. I will be making this analysis on a number of loans
and determining which combination of payments best fits my budget.

I looked through the financial functions in Excel but was confused on
how to use them. For example, the PMT function looks like the formula I
want to use but it looks like it wasn't meant to calculate daily
interest with one monthly payment... Any help here would be
appreciated.

(For the curious these "loans" are credit card balances. In the long
run I may be better off getting a big loan with a lower interest rate
than the average for the credit card balances but I'd like to make my
decisions based on the analysis.)

 

[STUART BISSET]

PMT is the function to use.

=PMT(rate,nper,pv)

For rate you want to use (EXP(n%)^(1/12)-1) - this will give you
daily interest on a monthly repayment where n% is the annual rate charged
for nper you can refer this to a call which contains the number of monthly
repayments you wish to make
for pv you should refer this to the outstanding balance on your credit card
or the value of the loan you wish to take.

HTH