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Lease with residual

  1. #1
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    Lease with residual

    I am trying to construct a table where a loan (say $500,000) is 50% amortised over a given period (say 5 years) at a fixed interest rate. I can't work out the formula which will allow it to calculate interest on the full $500k in the monthly repayments but only make capital repayments on $250k

    I am trying to use PMT. Is that suitable?

    Thanks for any advice.
    Last edited by BRISBANEBOB; 11-04-2010 at 12:17 AM.

  2. #2
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    Re: Lease with residual

    I am trying to use PMT. Is that suitable?
    Think so:

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    Re: Lease with residual

    OK, that's what I thought but when I run it I don't get the $250k residual (see attached). It's close but no cigar so there must be some other switch somewhere which I'm not seeing...
    Attached Files Attached Files

  4. #4
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    Re: Lease with residual

    If you're paying monthly, the periods should be 60 and the interest 1/12 of annual interest.

  5. #5
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    Re: Lease with residual

    E.g.,

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  6. #6
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    Re: Lease with residual

    Got it - thanks. Much appreciated. Reputation added to.

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