Interest Rate Calculation With Payment Increases
Mar 4, 2014
I have a capital lease amortization schedule with annual increases to monthly rent that I am trying to solve for an interest rate such that the balance nets to zero at the end of the term. I am calculating on a monthly basis; in other words, principal minus monthly payment plus monthly interest expense equals ending monthly balance is calculated in each row each month. The present value is known, payment term is known, future value is zero, and the payment amounts increase annually. These assumptions may change for new leases so ideally the solution would be dynamic, adjusting for shorter/longer terms, etc. Here is an example of my assumptions:
Payment start date: 8/1/13
Term end date: 10/31/2025
Rent length in months: 144
1st months rent: $500,000 - payments are due at the beginning of the month and are paid monthly
Annual rent escalation: 3% - i.e. 1st 12 months is $500k/month, 2nd 12 months at $515K, etc.
Beginning NPV: $75M
Ending value: $0
Imputed annual interest rate: UNKNOWN
I'm not sure if this is relevant, but the monthly payment is allocated between principal and interest. Monthly interest expense is calculated as the current balance * (imputed interest rate / 12).
Currently, I've plugged the interest rate such that my ending balance is 0, however I was hoping to calculate it on the fly as opposed to manually plugging it.
how to calculate annual interest rate with these inputs? Is there a way to make the rate function work with payment increases?
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Aug 27, 2008
I have a calculation I do that calculates a clients "effective interest rate" if they make extra payments towards principal.. Calculation works fine.. However, I am now trying to figure out how to amend that code if it's an interest only loan, anyone have any ideas?
Here is the effective rate calcs on a random normal amortization loan:
this is in B2, and answer is 7%
=RATE(B4*B5,-((B3+B7)/B6),B7)*12
B3 = Total*Interest 279017.8
B4 = #*Years*in*Loan 30
B5 = #*Payments*/*Year 12
B6 = Total*Payments 360
B7 = Beginning*Principal 200000
B8 - Ending*Balance 0
problem is when someone is on an interest only loan they pay more interest than a normal amortization because they are not reducing the principal in the first x number of years. So I need to compare the interest only effective rate to an interest only loan.
Here is the example I'm working on... A client's loan is the following:
Loan amount - 131,538
interest rate - 6.15
30 year amortization
10 years interest only
normal client would pay an interest only payment of 674.13, then after i/o period would go to 953.80 for last 20 years of the loan, and they'd pay about $178k in interest.. Now if that client pays an extra 1,000 per year, I can calculate the amount of interest they'd accrue, but have no clue how to back into the "effective interest rate", basically that says you are paying the same amount of interest as someone with a x.xx% interest only loan.
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Apr 9, 2014
I have a created a Data Chart Below. A - C are the columns and 1-7 are the rows. I have hard-coded the equation in cell B5 that I am using.
What I want to do is input an number into B3 that automatically makes Cell B5 equal to Cell C1. Is there a process in excel you can use to do this. Or do you just have to use trial and error?
A B C
1Loan Amount$10,500,000 0.0730041581143804
2Term 10 years
3Rate
4Amortization30 years
5Constant (K) =PMT(B3/12,(B4*12),-1000)*0.012
6Annual Payment$766,544
7Monthly Payment$63,879
Example is attached.
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Aug 24, 2006
I have been raken by brain for a simple formula to calculate an Interest Only Payment on a mortage note, example,
sales price = $162000
term = 360
interest = 8.5
I was able to calculate the payment of principle and interest, but I need to validate what would be an Interest Only payment on this?
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Mar 6, 2007
Is there a function that calculates what interest rate is needed to turn a $2000 investment into $9000000 in 30 years based on compounding interest?
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Nov 8, 2008
Some years ago I came across a formulae to calculate Daily Interest on a Building Society Savings account in the UK. I have used this since but find my calculations never work out the same as my BS, although to my advantage! It is =B3*B4/360*DAYS360(B5,B6,TRUE) Where:
B3=Capital
B4=Interest Rate
B5=Starting Date
B6=Finishing Date
For some reason the formulae uses 360/year and not 365/year. Using both still gives wrong answer.
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Sep 15, 2013
find attached herewith a sample file.
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Aug 18, 2009
If I invested $350 per hectare into a project and at the end of 12 years that investment yielded me $150,000, what would my rate of return be over the life of the project?
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Jan 27, 2007
I am trying to calculate the effective annual interest rate earned on an investment and find the results are close but not really accurate. I suspect because I have not included the frequency of interest in my existing formula
r = n * nt root (A/P-1)
where;
r = the effective interest rate
n = the number of times interest is added per year
t = the total number of years
A = the current value
P = the original value
The 2 problems I face are;
1. Confirming this formula would provide the correct answer (need maths expert here) &
2. How would "nt root" (as in sqr root, but using the product of the years and frequency) be used in Excel
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Jan 31, 2014
I currently use goal seek to calculate an interest rate for a loan product. My problem is i would like to have the same function but not through a goal seek. In goal seek i have to set the value i want to achieve but ideally i want it to calculate automatically
I have attached a workbook with details. I use a loan amortization schedule to calculate the interest from parameters set on sheet 1
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Feb 2, 2014
I would like a function which works like the NPV function except that the interest rate should be variable and a range rather than a single number.
Is it possible to see the code for the excel NPV function so that I can modify it?
Or alternatively has seen such a function?
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Jul 6, 2013
I keep coming across bonds having different annual interest rates and different compounding frequencies (quarterly, half yearly and yearly).
I know there is a YIELD function, but it requires so many inputs. I was wondering whether we can calculate cumulative yields just from annual interest rates, compounding frequency and investment duration?
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May 25, 2009
The way I have this sheet setup is to calculate a 20% fee off the interest earned column "D". Say you earned 6.5% on a beginning balance so the interest earned is in col "D". This works fine for a 20% fee but I need the fee to calculate a 10% fee if the interest in column "C" hit 4% or below and it also needs to be able to calculate a 20% fee if the interested earned is above 4%.
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Apr 28, 2008
I have a macro that formats a spreadsheet to show outstanding invoices, grouped and subtotalled by month. To add to this I need VBA code that will use the subtotals to calculate interest on overdue accounts.
Interest becomes due a calender month after the month in which the invoice is dated. So for example a January invoice would start to accrue interest on 1st March.
Below is the subtotals code (sadly the totals don't adjust if data is added or removed but perhaps that is another question for another day.)
Dim LastRow As Long
Dim NextMonth As String
Dim R As Long
Dim Rng As Range
Dim SubAmount As Currency
Dim ThisMonth As String
Dim TotalAmount As Currency
Dim Wks As Worksheet
Set Wks = Worksheets("Reconciliation")
LastRow = Wks.Cells(Rows.Count, "A").End(xlUp).Row
Set Rng = Wks.Range(Cells(2, "A"), Cells(LastRow, "D"))
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Jan 26, 2014
I have created a excel sheet here i want the total interest charged for three months in 3rd mnth interest charged column, if i select 7 mnths term total interest charged for 7 months should come in 7th month interest charged colum, if it is 13 months total interest for 12 months in 12th month interest column and remaining 1 month interest in 13th month interest charged column
INTEREST CAL.xlsx
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Dec 29, 2013
I have a problem calculating a total interest for an input period that has different interest rates. You can see the attached file: INTEREST.xls
I have used a function but the result comes out wrong. Can I fine tune it or do I have to change my method of calculating.
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Jun 4, 2007
The formula I am looking for would tell me what annual growth rate % I would need to achieve to make any investment reach a set target, for instance, what % of fixed annual growth would I need to make 200K grow to 750k in say 10 yrs or any time scale. I was given the formula below but Excel tells me it's wrong, I have tried putting 10 before ^ and the 10 after but to no avail, could some kind soul please put me straight.
r = 100((Y/X)^(1/n))-1)
So for X = 200, Y = 750, n = 10, we have
r = 100((750/200)^(0.1))-1) = 14.1309%
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Feb 13, 2014
From a chart in Excel I need to automatically calculate what the annual percentage growth rate is of a trend line. How to automate this in Excel? I've attached a sample so you can see what I'm trying to accomplish.
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Sep 22, 2011
I'm trying to come up with an array formula to count the consecutive declines or increases from the last value in a column, going from bottom to top. The real world application is a list of daily stock prices down a column, and counting from the most recent day, how many consecutive days the price declined or increased.
I got some hints in the following post but can't get it evaluate the resulting logical array in reverse order (which is needed since column addresses are evaluated top to bottom, not bottom to top).
Count consecutive increase in values
Example for consecutive increases leading to last value
49
50
51
52
53
49
55
56
I need a formula to return 2, the number of increases from 49 to 56.
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Aug 7, 2013
I have a cell (c9) that increases on an integer basis using a rounddown function that in turn is looking at a calculation in a different cell. Is it possible to create a pop as the integer value in c9 increases by 1?
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Aug 1, 2009
In sheet 1 of my workbook I have a spreadsheet with lots of different data, most of this data is pulled from our own internal process books.
The problem I need help with is,
Cell "A5" contains a storage tank level.
Cell "A6" contains the date the storage tank was last filled, (this info is required for auditing purposes).
If possible I would like to automate the date entry.
So when the level increases by say 2.0 I would like the new date in cell "A6". I don't want that date to change if the level stops the same or decreases. So the date will not change again until the storage tank has been emptied and refilled.
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Aug 26, 2009
The following is the macro I have created, but I can't get it to loop. I need to insert a row below Labour-Overtime about 100 times in the document, not just once. Until the bottom. Also, active cell 1013 needs to be the same as what is above it. The series repeats and goes up by 1 every time. Not sure how to get that to work.
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May 6, 2012
I want to make a dynamic chart that grows as the data increases
The data is from C23:O23 (12 Columns)
The Months are from C22:O22 (12 Months)
I am only on month 4 (April) but this will eventually but 12 months
Looking at various sites you have to use a dynamic named range and in the Refers box drop in an OFFSET formula.
My problem is I cannot figure out an OFFSET formula for columns instead of rows.
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Jan 27, 2008
I am using Excel 2003 on Windows XP, and I have created a form using several TextBox controls on Worksheets (not userforms). When I click on a textbox that has some text in it, the size of the text grows. Clicking away from it, and then clicking on it again causes the text to grow further. Repeating these actions ultimately causes the text to be so large that the contents are illegible. There is no VBA code manipulating the font in the controls, they are only set initially through the settings in their properties (all textboxes use the same font). The problem occurs on multi-line as well as single-line textboxes. In debug mode, I can see that the font.size has not changed from the initial setting of 9, so there is no manipulation of the settings. It looks like the control is being zoomed, as the size of the vertical scrollbar grows along with the text. Closing the file and reopening it doesn't resolve the problem. The textbox retains the size that it has grown to. This problem seems to happen on some environments and not others, and I have not been able to determine the cause or factors that contribute to this phenomenon.
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Jun 28, 2008
I am experiencing exactly the same problem as described in Textbox Text Increases In Size With Click here, so browse to the following location to view the sample file:
[url]
username "turbocam"
password "danielsresort"
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Jul 18, 2013
I have a single figure and as the figure increases and moves through thresholds the pay changes. e.g.
Number of sales payable = 15.66
Level 1: 1-10 pays 100 for each that falls in this threshold
Level 2:11-15 pays 150 for each that falls in this threshold
Level 3: 16-20 pays 200 for each that falls in this threshold
Level 4: 21+ pays 250 for all above this
I want to work the amount payable with a formula.
It should be $1849
Is there a formula that can calcualte this without me manually figuring out how many in each threshold.
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Jun 7, 2014
I was just wondering if it possible to create a macro that permanently increases the height of a workbook by a set increment
I have several workbooks that i have the code below assigned to
[Code] ......
So when they open they resize to that set size and position. and what ive been doing if i need to resize (which is often) is just adjust the values in the above code.
Not that the way ive been doing it is difficult but i was thinking how great it would be if i could have a macro i could run that permanently adds 9 to the .Height and subtracts 9 from the .Top
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Dec 2, 2008
This is a new payment status sheet that my company has put together to use with future clients. There are a few things that we would like fixed but can not figure out ourselves. I have attatched the document along with some notes as to what we can not get to work.
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Apr 9, 2009
I would like to be able to choose a month (from a drop down menu), then choose who the payment will go to ie. creditor (from a drop down menu) ie. car, truck, cc payment, as a result of those selections, then enter the amount of the payment, and finally the ending balance will appear. I have the drop down menus in place and I have all the balance calculations in place. I could use the spreadsheet that I have but I only want to see the below info. Plus I don't know how to link or lookup this data to the stuff I've already created.
Select Month:
Select Creditor:
Enter Payment:
New Balance:
I have already set the sheet up calculating the balances after a payment has been made. I know how to hide all the formulas, but I don't know how to get it to so that you choose a month, then creditor type (from drop down menus), and payment so that you see a new balance. I only want to be able to link or lookup the month, creditor together so that a payment can be made to that cell that I've already established. As a result, then that cell can be shown in the new balance.
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Feb 8, 2010
Not sure if this is the correct section for this kind of query but I'd like some assistance with a calculation that I can't seem to figure out.
Essentially it's for calculating night payments for our employee time-sheets. Our staff have very sporadic shifts and are paid extra for working between the hours of 00:00 and 06:00, basically when employee's enter their start and end times I'd like the spreadsheet to automatically calculate how many hours they have worked between those hours, I imagine it's very simple but I cannot figure out which function to use.
To complicate matters, because staff can work shifts which start on one day and finish the next we work on a 48:00 clock basis so its' not only between the hours of 00:00 - 06:00 where they qualify for night payments but also from 24:00 - 30:00 if that makes sense?
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