Page 110 - CalcBus_Flipbook

11-16 Credit with MS Excel CH 11]

Calculations begin:

14. Select cell F23. This cells in this column will calculate the amount of interest that is paid with
the payment. You will type =Interest_Rate_Period * Current_Balance. This will multiply ( * ) cells
C9 (interest rate for the period) by the C23 which you labeled Current_Balance. Your computer
will also bring up a menu to choose from, and you must select wisely, for if you use the wrong
label your schedule will not calculate properly.

15. Select cell G23 for the Principal amount of the payment being applied to the loan. Type in
this cell, =Regular_Payment — F23. Note the minus ( — ) between Regular_Payment and F23,
as you are subtracting the interest paid from the monthly payment to calculate the amount
applied to reduce the principal of the loan.

16. Select cell H23 for the Balance remaining in the loan after the payment has been made as
applied to the loan. Type in this cell, =Current_Balance — G23. Note the minus ( — ) between
Current_Balance and G23, as you are subtracting the Principal paid from the beginning balance
in column C. All other beginning balances will be based on these reductions.

17. Begin the addition for amount of interest spent over time with the Cum Interest column,
J23. Select cell J23 and type in this cell, =F23 this will record the amount of interest
with this payment.

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