Hi
I have been trying to create a CUMIPMT formula in Excel to calculate the interest in one year on a car loan that has a residual payment
Loan Amount $75,000
Term 3 years
Interest rate 5.25% payable monthly in arrears
Balloon Residual Payment at the end $20,000
With this type of loan, repayments are based on $55,000 ($75,000 less Balloon $20,000) but interest is payable on 75,000 amortising
I have been searching forums and the formula I came up with was:
=-CUMIPMT(K22/12,L22*12,J22,1,12,1)+(M22*K22/12)
But for the 12 months this gives an answer of $3119 whereas the correct answer is $3523
I would be most grateful for any guidance you can provide
Regards
Bruce
I have been trying to create a CUMIPMT formula in Excel to calculate the interest in one year on a car loan that has a residual payment
Loan Amount $75,000
Term 3 years
Interest rate 5.25% payable monthly in arrears
Balloon Residual Payment at the end $20,000
With this type of loan, repayments are based on $55,000 ($75,000 less Balloon $20,000) but interest is payable on 75,000 amortising
I have been searching forums and the formula I came up with was:
=-CUMIPMT(K22/12,L22*12,J22,1,12,1)+(M22*K22/12)
But for the 12 months this gives an answer of $3119 whereas the correct answer is $3523
I would be most grateful for any guidance you can provide
Regards
Bruce
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