Date post: | 16-Jul-2015 |
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ASSIGNMENT 01
COMPUTER LITERACY AND APPLICATION
ISM 12023
LOAN AMORTIZATION SCHEDULE
LECTURE IN CHARGE: MM.SHIRAJ
SUBMITTED BY:
SM.SAJIR
SEU/IS/11/MG/020
FIRST YEAR, SEMESTER-02
19-02-2014
SOUTH EASTERN UNIVERSITY OF SRI LANKA
Loan Amortization Schedule We use the PMT function to calculate the monthly payment on a loan.
PMT function:-
=PMT (Annual Interest Rate/ Payments Per Year, Loan Period Years * Payments Per Year, Loan Amount)
First you have enter loan details like this,
Here we can find beginning balance in B8 cell entering the formula “=B1”
Next we are going to find ‘SCHEDULED PAYMENT’
Scheduled payment formula is,
=PMT(Annual Interest Rate/ Payments Per Year, Loan Period Years * Payments Per Year, Loan
Amount)
Blow this picture clearly showing that formula and we have to give absolute reference also for each
cells
Next we have to calculate PRINCIPAL payment in scheduled payment
Here we can use the PPMT function to calculate the principal part of the payment.
PRINCIPAL payment function is,
=PPMT(Annual Interest Rate/ Payments Per Year, Payment Number ,Loan Period Years *
Payments Per Year, Loan Amount)
Below the picture showing the formula clearly, and we have to give absolute reference each calls
without PAYMENT NUMBER cell.
Next we have to calculate INTEREST in scheduled payment.
Here we can use the IPMT function to calculate the interest part of the payment.
INTEREST formula is,
=IPMT(Annual Interest Rate/ Payments Per Year, Payment Number ,Loan Period Years * Payments
Per Year, Loan Amount)
Below the picture showing the formula clearly, and we have to give absolute reference each calls
without PAYMENT NUMBER cell.
Next we have to find ENDING BALANCE
We can easily find ending balance subtract PRINCIPAL from the BEGINNING BALANCE
ENDING BALANCE = BEGINNING BALANCE – PRINCIPAL
Below the picture showing the action clearly.
Next
Select the range A8:F8 (first payment) and drag it down one row.
Below the picture showing this action clearly
Next
Change the BEGINNING BALANCE formula at payment number two.
B9 cell equal F8
Below the picture showing this action clearly
Next
Select the range A9:F9 (second payment) and drag it down row 103.
Below the picture showing this action clearly
After this action we can find payments automatically
Below pictures showing the actions
Next
We want to calculate scheduled payment and number of payment
Using this formula we can find scheduled payment.
=PMT (Annual Interest Rate/ Payments Per Year, Loan Period Years * Payments Per Year, Loan
Amount)
Below the picture showing the function.
Next
We want to find number of payment
We can easily find number of payment multiple by loan period years and number of payment per
year.
NUMBER OF PAYMENT = LOAN PERIOD YEARS * NUMBER OF PAYMENT PER YEAR
Below the picture showing this function.
After this, when you change the loan amount or interest or year or payment per year, the results
will be automatically changed.