|
» Calculating Canadian Mortgage Payments
CATEGORY: Excel Financial Formulas |
VERSIONS: All Microsoft Excel Versions |
|
Problem: The following PMT formula calculates the monthly payment for a $100,000 mortgage, repaid over a period of 20 years, at 8% annual interest: =PMT(8%/12,12*20,100000,0,0) As Canadian interest rates are calculated semi-annually, rather than annually, the above formula will not calculate the payments correctly. How can we modify the above PMT formula to calculate monthly payments for Canadian mortgages? Solution: With interest rate in column A, period (years) in column B, and mortgage sum in column C, use the PMT function as shown in the following formula: =PMT((A2/2+1)^(2/12)-1,12*B2,C2,0,0) |
|
RATING:
4.12
VIEWS: 20877 |
||||
Sponsors:
 |
Book Store:
Recommended Books:
- Wall Street Journal Guide to Understanding Money and Investing
- Business Analysis and Valuation: Using Financial Statements, Text and Cases
- Financial Shenanigans : How to Detect Accounting Gimmicks & Fraud in Financial Reports
- Microsoft PowerPoint Version 2002 Step by Step
- The New Financial Order: Risk in the Twenty-First Century
- The Ernst & Young Business Plan Guide
Related MS EXCEL TIPS:
Terms
and Conditions of use
The applications/code on this site are distributed as is and without warranties
or liability. In no event shall the owner of the copyrights, or the authors
of the applications/code be liable for any loss of profit, any problems
or any damage resulting from the use or evaluation of the applications/code.
