Imagine that you are about to take out a 25-year fixed-rate mortgage. The terms of the loan specify an initial principal balance (the amount borrowed) of 100000 euro and an APR of 5,75%. Payments will be made monthly. What will be the monthly payment? How much of the first payment will be interest, and how much will be principal? Answer : Monthly payment will be 629,11 euro. 479,17 euro of the first monthly payment will be interest and 149,94 euro will be principal. * Next time you discuss about a loan and you ask for a 1% lower interest rate and they tell you : “Come on, it is only 1% percent more and it does not matter.”, show them this table. And then tell them that it is only 1% more but it does matter. Α 1% lower interest rate makes a difference i.e. paying less 17696,71 euro for…

Consider a loan with an annual interest rate of 6%, a 20-year duration, a present value of 150,000 EUR (amount borrowed) and a future value of 0 (that’s what you hope to achieve when you pay off a loan). Present Value (pv) 150000 Future Value (fv) 0 Annual Interest Rate (rate) 6% Terms (Years) (nper) 20 Compounding periods per year 1 Annual Payment (pmt) -13.077,68 € Calculate the annual payment of a loan with the PMT function Τύπος κελιού F10 =PMT(F7;F8;F5;F6;0) softexperia.com

Pin It

By continuing to use the site, you agree to the use of cookies. / Συνεχίζοντας να χρησιμοποιείτε την ιστοσελίδα, συμφωνείτε με τη χρήση των cookies. more information / περισσότερες πληροφορίες

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.