Could anyone help me to calculate the monthly
payment for the below details:
Loan taken: 43000
interest rate: 4% based on reducing balance
years: 7 years
=pmt(4%/12,7*12,-43000,0)
That presumes the loan should be reduced to zero after 7 years. If
there is a balloon payment, replace zero (last argument) with the
balloon payment as a positive number.
Caveat: the PMT result should be rounded up (ROUNDUP) to at least the
smallest currency unit (cents in the US). Since you did not mention
what currency, I did not want to make presumptions.
If you do round up PMT, the last payment is likely to be less than
normal. That last payment amount can be computed by:
=fv(4%/12,7*12-1,pmt,-43000)*(1+4%/12)
where "pmt" is the rounded-up monthly payment. That formula should
rounded or rounded up, depending on the lender's policy.
