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| Thread ID: 135506 | 2013-11-11 20:09:00 | Maths calculation - formula or Excel? | Greg (193) | PC World Chat |
| Post ID | Timestamp | Content | User | ||
| 1359488 | 2013-11-11 20:09:00 | I need to calculate the total repayments of an "interest free" loan. Its advertised as interest free over 50 months. The principal amount is $1512. The minimum payment is 3% of the balance, starting at %1512, each month. So, I need either a formula or an Excel formula to calculate how much I would've paid at the 3% each month after 50 months. Can anyone assist please? I could probably nut it out eventually using the spreadsheet programme, but it feels too much like a sweat right now. |
Greg (193) | ||
| 1359489 | 2013-11-11 20:43:00 | My understanding of those deals is that they actually start calculating the interest from the time of purchase ( if you read the small print) That would be 3% of $1512 per month times 50months which equals $90.72 per month.(minimum payment) Not sure how to do that in excell though. |
Webdevguy (17166) | ||
| 1359490 | 2013-11-11 20:56:00 | Here is a formula in excel www.excel-easy.com |
Webdevguy (17166) | ||
| 1359491 | 2013-11-11 21:16:00 | Taking you literally Greg, 3% of the balance each month (so payments would gradually decrease as the balance shrinks) You would have paid off roughly $1,172 of the $1,512 before the interest kicked in. Not sure that's how it works though |
the_bogan (9949) | ||
| 1359492 | 2013-11-11 22:57:00 | I do it what I consider the easy way, In the first cell in a column (say A1) enter the amount, below that use the formula =A1-(A1*.03) then just fill down as far as you want and it automatically adjusts the formula. At row 50 it reaches $339.9122 still to pay. Put $7 a month aside and you'll have enough for the final payment. A better thing to do I think is Pay the minimum payment the first month of $45.36 and then keep paying at $45 till it's paid off in about 33 months. Alternatively just paying a minimum of $30 once the 3% falls below that will keep you ahead of the 50 months. I never pay minimum amounts myself, I prefer to be at least a little ahead. |
dugimodo (138) | ||
| 1359493 | 2013-11-11 23:41:00 | We rarely take on time-payments, last one was for dental work (crowns as a legacy from incompetent dental work following a major motor accident). I used a 12 months interest-free deal through GE Money, read their fine print and found that just one late payment would cancel the 'no interest' deal and 20% would have to be paid on the entire sum borrowed. I set up a system to warn me several days before due date and paid the installment in full. Net result was that I borrowed $10,000 off a loan shark for 12 months free of charge! Normally we just wait until we can pay cash, by which time we've either changed our mind, the item is available as-new on TM from some other sucker who thought it was a bargain, it is being remaindered by the shop, or it can be found in a charity shop, as-new. MrsT has a range of high fashion designer clothing that she would never have even considered buying at the original asking price, she just keeps an eye on those shops and the 'wear once' shopaholics will dump it and buys what she likes for peanuts. Cheers Billy 8-{) |
Billy T (70) | ||
| 1359494 | 2013-11-12 06:30:00 | Don't know about calculating the interest but pay more than minimum, at least then if you have a hard month you have some cover in that you might be ahead on your payments. Check though because I know some companies will not count extra payments as the next months minimum. | hueybot3000 (3646) | ||
| 1359495 | 2013-11-13 17:17:00 | I guess, you need to use both to compare but better first calculate it with a formula:) | homelybelly (17192) | ||
| 1359496 | 2013-11-13 18:48:00 | I do it what I consider the easy way, In the first cell in a column (say A1) enter the amount, below that use the formula =A1-(A1*.03) then just fill down as far as you want and it automatically adjusts the formula. At row 50 it reaches $339.9122 still to pay.Thanks Dugi, that SEEMS to be the way to do it but I can't get it to work. Your minimum for the first month is slightly more than what I've been given on my first invoice. Can you elaborate on the steps please? :stare: | Greg (193) | ||
| 1359497 | 2013-11-13 19:13:00 | 1512 x .03 (3%) = $45.36 so I'm not sure why it'd be less, unless they are calculating for a partial month or something? which would make things tricky. Perhaps splitting things up a little might make it easier. Same as my other post broken into 3 columns Use 3 columns, Say A, B, C, label them balance, minimum payment, balance after payment In column A put the opening balance, in column B the formula =A2*.03, and in column C the formula = A2-B2 (assuming A1, B1 etc is the titles). In A3 put the formula = C2 Now highlight the cell with the formula in it and the cells below it to about 52 (50 + the title + opening balance) and push ctrl-D (fill down) repeat for colums B, & C Once that ll looks right you can adjust it by manually entering whatever minimum payment you actually receive a bill for directly into the cell in column B replacing the formula and the rest of the sheet will adjust itself. There are more complex ways of using Excel but I like to keep it relatively simple. |
dugimodo (138) | ||
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