EXCEL 2007 Formula to calculate INTEREST only on a 3 month bridge

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Excel 2007 dummy

I am trying to calculate monthly INTEREST ONLY payment on a short term
bridge/swing loan. Assuming an interest rate of 2.75%, paid monthly, Also
assuming it will be required for a 3-6 month period, amount approx $500,000.
Just switched to Excel 2007 but don't seem to be able to calculate using the
formula builder. Not sure if it is compounded daily or monthly.
 
You might want to check out the IPMT function. From the XL help file:

IPMT(rate,per,nper,pv,fv,type)

Rate is the interest rate per period.

Per is the period for which you want to find the interest and must be in
the range 1 to nper.

Nper is the total number of payment periods in an annuity.

Pv is the present value, or the lump-sum amount that a series of future
payments is worth right now.

Fv is the future value, or a cash balance you want to attain after the
last payment is made. If fv is omitted, it is assumed to be 0 (the future
value of a loan, for example, is 0).

Type is the number 0 or 1 and indicates when payments are due. If type is
omitted, it is assumed to be 0.

Set type equal to If payments are due
0 At the end of the period
1 At the beginning of the period
 
If the interest is "paid monthly", the amount is:
=500000*2.75%/12

Sometimes eschewing financial functions makes things a lot easier.

Regards,
Fred.
 
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