Page 104 - CalcBus_Flipbook

11-10 Credit with MS Excel CH 11]

18. Click on cell H18 to select it and then click inside the formula bar to enter
this formula: =H17*H16 and press the Enter key of the keyboard. The * character
tells the computer to multiply and is found above the 8 key on your keyboard; you
press down and hold the shift key and then tap the 8 key to get the *. In this cell the
computer is reporting the Regular Payment. You will note that the Regular Payment
in cell D13 = the Regular Payment in H18. The amount is $324.89.

What you have completed and developed is a Loan Calculator tool that you will be able
to calculate Monthly Payments for fully amortized loans. These loans are typically used in
borrowing and lending.
Once you have this set up, it is possible to quickly calculate the monthly payment based
on loan amount, interest rate, life of Loan in years, and the number of payments per year,
along with the Total Cost and Total Interest. SAVE this spreadsheet Loan Calculator to
your computer as you can use it in many different loan situations.

Pmt = PV r
1 — (1 + r) - n

Loan Payment Schedule

Example: Marlene Minor negotiated a price on some acreage with a loan amount of
$25,000 at an annual interest rate of 5% for a life of 30 years and 12
payments per year. She needs a Loan Payment Schedule to follow the Interest
she will pay and the principal payments on the loan.

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