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PV Formula: Compounded Semi-Annually (Mortgage)

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    PV Formula: Compounded Semi-Annually (Mortgage)

    Hello. First post here. I hope you are all doing well! I am stuck on an issue and I was hoping someone could assist.

    I am working through a formula to determine how much debt someone could potentially get if they know how much they could afford to pay monthly. The formula I am using is:

    =PV(rate, nper, pmt)

    RATE = interest rate per period
    NPER = periods per term
    PMT = payment per month

    This works assuming a standard mortgage that is compounded annually (standard in the US). However, mortgages in Canada are compounded semi-annually by law. Does anyone know how I can adjust the formula above to account for the change?

    Thank you!

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    Re: PV Formula: Compounded Semi-Annually (Mortgage)

    hello, if B1 is your annual percentage then this formula gives you the monthly compounded percentage
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    Re: PV Formula: Compounded Semi-Annually (Mortgage)

    crossposted: https://www.mrexcel.com/board/thread...tgage.1240896/

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    Re: PV Formula: Compounded Semi-Annually (Mortgage)

    Very sorry about that Alan, I did not realize that was an issue. Thank you BSALV very much for your help!!

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