Discover How To Calculate Many Scenarios For Loan Payments With This Excel Tutorial
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Microsoft Excel: Calculate Many Scenarios For Loan Payments

Article by Mr Excel (11,376 pts )
Published on Jun 25, 2008
Problem: You are considering buying a car. You used the previous tip to calculate a loan payment, as shown in Fig. 326. You want to do some “what-if” scenarios in order to see various options of increasing or decreasing the term or price.
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Strategy: Follow the same setup that you used for the previous tip, as shown in Fig. 327.

1) Enter Price, Term in Months, and Annual Percentage Rate in cells B2:B4. See Fig. 327.

2) Enter this formula in cell B6: =–PMT(B4/12,B3,B2). See Fig. 327.

3) Copy cells B2:B6 over for several columns. Plug in different numbers for the price and/or term, as shown in Fig. 328.

Summary: This is where Excel shines. After you have entered the formulas for one loan model, you can easily copy and create many more

loan models.

Functions Discussed: =PMT()

Cross Reference: Calculate a Loan Payment


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Images

Fig. 327Fig. 328

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