Interest calculation

Interest rate: 6.9%
Amount: 2500
Period: 24 months

The company says monthly payments wil be 111.63. But none of the excel
formulas I've tried (PMT, PV, IPMT) return the same.

Note: I do not have & cannot install CUMIMPT

Thanks.

=PMT(6.9%/12,24,2500)
Indicates a payment of 111.82, suggesting that your final payment will
be 116.46
=FV(6.9%/12,23,-111.63,2500)*(1+6.9%/12)
if you only pay 111.63 per month. Another possibility is that the
raight is slightly under 6.9%, but
=RATE(24,-111.63,2500)*12
returns 6.73%, so the difference would be more than just rounding.

Jerry

JohnP wrote:

> Interest rate: 6.9%
> Amount: 2500
> Period: 24 months
>
> The company says monthly payments wil be 111.63. But none of the excel
> formulas I've tried (PMT, PV, IPMT) return the same.
>
> Note: I do not have & cannot install CUMIMPT
>
> Thanks.

Thanks. Strange, isn't it?

I have now been able to add-in CUMIPMT. Any use to me?

John

"Jerry W. Lewis" wrote:

> =PMT(6.9%/12,24,2500)
> Indicates a payment of 111.82, suggesting that your final payment will
> be 116.46
> =FV(6.9%/12,23,-111.63,2500)*(1+6.9%/12)
> if you only pay 111.63 per month. Another possibility is that the
> raight is slightly under 6.9%, but
> =RATE(24,-111.63,2500)*12
> returns 6.73%, so the difference would be more than just rounding.
>
> Jerry
>
> JohnP wrote:
>
> > Interest rate: 6.9%
> > Amount: 2500
> > Period: 24 months
> >
> > The company says monthly payments wil be 111.63. But none of the excel
> > formulas I've tried (PMT, PV, IPMT) return the same.
> >
> > Note: I do not have & cannot install CUMIMPT
> >
> > Thanks.
>
>

Is the 6.9% the stated note rate or the APR?
Did you pay a fee of some kind?

"JohnP" wrote:

> Interest rate: 6.9%
> Amount: 2500
> Period: 24 months
>
> The company says monthly payments wil be 111.63. But none of the excel
> formulas I've tried (PMT, PV, IPMT) return the same.
>
> Note: I do not have & cannot install CUMIMPT
>
> Thanks.

Sorry, good point. The rate ia an APR. There are no fees or protection
payments involved.

"Duke Carey" wrote:

> Is the 6.9% the stated note rate or the APR?
> Did you pay a fee of some kind?
>
> "JohnP" wrote:
>
> > Interest rate: 6.9%
> > Amount: 2500
> > Period: 24 months
> >
> > The company says monthly payments wil be 111.63. But none of the excel
> > formulas I've tried (PMT, PV, IPMT) return the same.
> >
> > Note: I do not have & cannot install CUMIMPT
> >
> > Thanks.