Hi!
What John wanted to know was how long it would take to exhaust his
40000 line of credit where interest was 6% nominal compounding
monthly, the existing debt was 20000 and he was drawing a net 290 per
month.
Formula was:
=NPER(6%/12,290,20000,-40000,0)
Returns: 45.765764851435
It's not a common problem but the logic of the solution is best
expressed in words. "How does it take for a loan of 20000 and further
loans of 290 per month (in arrears) to accumulate to a debt of 40000
where interest is 6%/12 per month. It's a case made easier by the use
of the signing of money flows convention.
John asked for the formula. I hope he doesn't ask for the underlying
explicit equation because it is a nasty logarithmic solution.
--
Regards
Norman Harker MVP (Excel)
Sydney, Australia
(e-mail address removed)
Excel and Word Function Lists (Classifications, Syntax and Arguments)
available free to good homes.
Norman Harker said:
Hi JGrabek!
On what you've written, you'll never pay it back as you are increasing
your debt at $300 per month plus interest on the amounts withdrawn.
--
Regards
Norman Harker MVP (Excel)
Sydney, Australia
(e-mail address removed)
Excel and Word Function Lists (Classifications, Syntax and Arguments)
available free to good homes.
