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how do I calculate a monthly payment based on a variable rate?

  1. #1
    Chick N Egg
    Guest

    how do I calculate a monthly payment based on a variable rate?

    I have to calculate a monthly payment based on avariable interest rate. What
    is the formula I use, ex. variable rate in is A6, loan term B6, and payment
    C6?

  2. #2
    bpeltzer
    Guest

    RE: how do I calculate a monthly payment based on a variable rate?

    Do you mean the initial loan amount is in C6?
    Until the rate changes, you have to base the payments on the current rate
    and term. =pmt(a6/12,b6*12,-c6). This assumes your rate and term are annual
    and your payments are monthly. Once the rate changes, you'd reestablish the
    payment based on the new rate, the remaining term and the remaining loan
    balance.

    "Chick N Egg" wrote:

    > I have to calculate a monthly payment based on avariable interest rate. What
    > is the formula I use, ex. variable rate in is A6, loan term B6, and payment
    > C6?


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