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The length of your loan is the amount of time in which you intend to repay the loan. For example, if you have a $200,000, 30-year loan, that means you intend to repay the loan over a 30-year span. In the formula, because you are determining your monthly payment, the length of the loan must be broken down to months.
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Results. interest rates remain the same for the term of the loan. One year is 52 weeks exactly, a month is 52/12 weeks and a fortnight is 26 weeks. Interest is calculated by compounding on the same.
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In other words, a loan that’s twice as long will cost more than twice as. This function is applicable only to loans where the payment amount is fixed for the length of the loan. Enter the following formula in cell C5: =PMT(C3/12,C4*12,C2). Note how in this formula we.
Excel Tip: Determining the Remaining Length of a Loan Using NPER. First, as shown in Figure 2, we’ll add the ROUNDUP function to our NPER formula. Loan periods will typically involve some fraction of the final month, which for our purposes we want to treat as a whole month. The ROUNDUP function rounds a number up, as opposed to the commonly used ROUND function that may round numbers.
Enter the formula to calculate the length of the loan in cell A4. On Excel or Google Spreadsheet, you would enter "=NPER(A1/12,A2,A3)" while you’d enter "=NPER(A1; A2; A3;)" in OpenOffice.org. Enter.
You’ll often find the formula written using an annual interest rate where the number of periods is specified in years or a fraction of a year. Formula #2 I = Prt Interest (I) = Principal (P) times Annual Rate (r) times Time in Years (t) The time can be specified as a fraction of a year (e.g. 5 months would be 5/12 years). Simple Interest Calculator