I am borrowing $10,000 for 10 months with an annual interest rate of 8 percent.

What are my monthly payments? How much principal and interest am I paying each month?
Rate 0.00666666666667
PMT,PPMT,IPMT Functions months 10
CUMPRING CUMIPMT loan amount $ 10,000.00

Time Beginning balance Monthly Payment

($66.67) 1 $ 10,000.00 $1,037.03
($60.20) 2 $ 9,029.63 $1,037.03
($53.69) 3 $ 8,052.80 $1,037.03
($47.13) 4 $ 7,069.45 $1,037.03
($40.53) 5 $ 6,079.55 $1,037.03
($33.89) 6 $ 5,083.05 $1,037.03
($27.20) 7 $ 4,079.90 $1,037.03
($20.47) 8 $ 3,070.07 $1,037.03
($13.69) 9 $ 2,053.51 $1,037.03
($6.87) 10 $ 1,030.16 $1,037.03

NPV of payments $10,000.00

payment beginning
of each month $1,030.16

monthly payment if
we make $1000
ending payment $940.00
ate of 8 percent.
est am I paying each month?
payment $1,037.03 ($1,037.03)
end of month

Principal Interest Ending Balance

$970.37 $66.67 $ 9,029.63
$976.83 $60.20 $ 8,052.80
$983.35 $53.69 $ 7,069.45
$989.90 $47.13 $ 6,079.55
$996.50 $40.53 $ 5,083.05
$1,003.15 $33.89 $ 4,079.90
$1,009.83 $27.20 $ 3,070.07
$1,016.56 $20.47 $ 2,053.51
$1,023.34 $13.69 $ 1,030.16
$1,030.16 $6.87 $ -

COMIPMT months COMPRINC months

2-4 2-4

-161.01258616814 -2950.08368190932
 r 0.2
NPV Time 0 1 2
277.7778 Investment 1 Cash flow -10000 24000 -14000
-27.77778 Investment 2 Cash flow -6000 8000 -1000
Present Value Inv 1 -10000 20000 -9722.22
Present Value Inv 2 -6000 6666.667 -694.444

Present Value beginning of year

Investment 1 $277.78
Investment 2 -$27.78
Present Value End of year
Investment 1 $231.48
Investment 2 -$23.15
Present ValueMiddle of year
Investment 1 $253.58 253.5753
Investment 2 ($25.36)
Total cash flow
0
1000
You are buying a copier. Would you rather pay $11,000 today or $3,000 a year for five years?
PMT r=0.12
Pay $3000 for 5 years
end of year $10,814.33
Pay $3000 for 5 years
bigining of year $12,112.05
Extra $500 Payment
end of year 5;end of
year payments $11,098.04

If at the end of each of the next 3 years I invest $2,000 a month toward my retirement and earn
8 percent a year on my investments, how much will I have when I retire?

FV Rate 0.08
Invest $2000 end of
year for 40 years $81,071.12
Invest $2000
beginning of year for
40 years $559,562.08

We start with $30000

and Invest $2000 per
year for 40 years $119,178.23
$119,718.70
 number of periods in future value you want to have
the annuity after the last payment is made

PV function is PV(rate,#per,[pmt],[fv],[type])

payment made each 0 or 1 and indicates when

period payments are made

nt and earn

the payment amount of money

interest rate per made each period
period. owed right now

FV function is FV(rate,#per,[pmt],[pv],[type])
Type is a 0 or 1 and indicates
number of periods when money is deposited
I am borrowing $10,000 for 10 months with an annual interest rate of 8 percent.
What are my monthly payments? How much principal and interest am I paying each month?
Rate 0.00666666666667
PMT,PPMT,IPMT Functions months 10
CUMPRING CUMIPMT loan amount $ 10,000.00

Time Beginning balance Monthly Payment

($66.67) 1 $ 10,000.00 $1,037.03
($60.20) 2 $ 9,029.63 $1,037.03
($53.69) 3 $ 8,052.80 $1,037.03
($47.13) 4 $ 7,069.45 $1,037.03
($40.53) 5 $ 6,079.55 $1,037.03
($33.89) 6 $ 5,083.05 $1,037.03
($27.20) 7 $ 4,079.90 $1,037.03
($20.47) 8 $ 3,070.07 $1,037.03
($13.69) 9 $ 2,053.51 $1,037.03
($6.87) 10 $ 1,030.16 $1,037.03

NPV of payments $10,000.00

payment beginning
of each month $1,030.16

monthly payment if
we make $1000
ending payment $940.00
 rate of 8 percent.
erest am I paying each month?
payment $1,037.03 ($1,037.03)
future value you want
end of month Monthly rate to have after the last Type is a 0 or 1 an
payment is made indicates when m
deposited

Principal Interest Ending Balance

$970.37 $66.67 $ 9,029.63 PMT(rate,#per,pv,[fv],[type])
$976.83 $60.20 $ 8,052.80
$983.35 $53.69 $ 7,069.45
$989.90 $47.13 $ 6,079.55 amount of mone
number of periods owed right now
$996.50 $40.53 $ 5,083.05
$1,003.15 $33.89 $ 4,079.90
$1,009.83 $27.20 $ 3,070.07
$1,016.56 $20.47 $ 2,053.51
$1,023.34 $13.69 $ 1,030.16 PPMT(rate,per,#per,pv,[fv],[type])
$1,030.16 $6.87 $ -
Principal PMT

COMIPMT months COMPRINC months

2-4 2-5 Interest PMT

-161.01258616814 -2950.08368190932 IPMT(rate,per,#per,pv,[fv],[type])

CUMPRINC(rate,#per,pv,start_period,end_period,type)
CUMIPMT(rate,#nper,pv,start_period,end_period,type)
 Type is a 0 or 1 and
indicates when money is
deposited

v,[fv],[type])

amount of money
owed right now

per,pv,[fv],[type])

er,pv,[fv],[type])

d_period,type)
d_period,type)
I want to borrow $80,000 and make monthly payments for 10 years.
The maximum monthly payment I can afford is $1,000.
What is the maximum interest rate I can afford?

Borrowing $80000

What is max rate you can handle? 0.7241%

If you can pay 10000 at end

what is max rate you can handle? 0.8185%

Check
PV $80,000.00
$80,000.00
 Guess at what the
loan rate is.

RATE(#per,pmt,pv,[fv],[type],[guess])
at what the
e is.
If I borrow $100,000 at 8 percent interest and make payments of $10,000
per year, how many years will it take me to pay back the loan?

Borrow $100000 8%
Annual payments of $10000 per year
End of year?
20.9123718790048
20 years will not pay it off;21 will

Check
20 years $98,181.47
21 years $100,168.03

If we pay $40000 at end of problem

15.9012327998202
15 years will not pay it off;16 will
NPER(rate,pmt,pv,[fv],[type])