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.
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