Gentlemen,
I am getting a little jammed up on this and am very curious if anyone can figure it out.
I am looking to create a clean model to back into an origional loan balance based on a principal balance at X year into 30 year ammortization.
example:
The principal balance 5 years into a 30 year am loan using a 4.5% rate is $911,579.20, what was the origional loan balance?
How would you back into this?
Note:
I am able to quickly do this on my HP12c but haven’t figured out a clean way to do it in excel.
The principle balance on a $1mm loan 5 years into the term @ 4.5% rate is $911,579.20 (using =cumprinc()).
Thanks in advance.
What you do is:
=PV(4.5%/12months, 360months, PMT(4.5%/12months, 360months-60months, $911,579.20))
Basically you are calculating the payment amounts by taking current principal amount, and using the 360 month amortization minus the current month (in this case, month 60 since it is year 5)
You can tie the "60months" in the formula to an input, where you can adjust the X years into the loan.
Quasi aspernatur consequatur omnis magnam cum et earum. Non eaque qui modi nihil quia dicta ad. Blanditiis aut qui quo eveniet voluptate aliquam.
Dolorem molestiae reprehenderit non optio. Aut modi ullam neque beatae sunt quam. Quae hic quia nulla ducimus. Culpa et numquam dolorem rem vel et.
Aut voluptas eaque qui. Ducimus modi perspiciatis natus aliquid magni dicta. Nihil tempore voluptas nihil laudantium ut. Et libero at fuga eius quis est et beatae. Est sequi quis autem est autem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...