Help needed on formulas

  • Thread starter Thread starter busterbrown885
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busterbrown885

Hi,
New to excel, need help in developing formulas for the following
examples

1. Payments of $440,000 semi annual for 20 years or 8million dollars
now, what is the rate of interest used to arrive at 8mm?

2. Payment of 8mm now or using a rate of 7% what should the semi annual
payments be for 20 years to equal the value of $8million?

Thank you for your help
 
1. Payments of $440,000 semi annual for 20 years or 8million dollars
Click to expand...
now, what is the rate of interest used to arrive at 8mm?

assuming 8m is the present value, use
=(1+RATE(20*2,440000,-8000000))^2-1
gives the result: 9.38%

2. Payment of 8mm now or using a rate of 7% what should the semi
Click to expand...
annual payments be for 20 years to equal the value of $8million?

=PMT(7%/2,20*2,-8000000)
result: 374618

Mangesh
 
why post the same question on two forums?.There are answers in the general
forum too.The same people generally read all forums
 
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