MODELING DEBT - LOAN TERMS Flashcards

1
Q

PMT

A

CALCULATES CONSTANT LOAN PAYMENT

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2
Q

PMT - FORMULA

A

=pmt(periodic rate, total periods, -loan amount, $ fv)

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3
Q

IPMT

A

CALCULATES INTEREST PAYMENT FOR THE PERIOD

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4
Q

IPMT - FORMULA

A

=ipmt(periodic rate, period, total periods, loan amount)

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5
Q

PPMT

A

CALCULATES PRINCIPAL PAYMENT FOR PERIOD OF INTEREST

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6
Q

PPMT - FORMULA

A

=ppmt(periodic rate, period, total periods, loan amount)

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7
Q

CUMIPMT

A

CALCULATES CUMULATIVE INTEREST PAID FOR PERIODS OF INTEREST

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8
Q

CUMIPMT - FORMULA

A

=cumipmt(periodic rate, total periods, loan amount, beg period, end period, 0)

*LOAN AMOUNT MUST REMAIN POSITIVE FOR CALCULATION TO WORK

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9
Q

CUMPRINC

A

CUMULATIVE PRINCIPAL PAID FOR PERIODS OF INTEREST

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10
Q

CUMPRINC - FORMULA

A

=cumprinc(periodic rate, total periods, loan amount, beg period, end period, 0)

**LOAN AMOUNT MUST REMAIN POSITIVE TO CALCULATE CORRECTLY

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11
Q

REMAINING LOAN BALANCE - FORMULA

A

= ORIGINAL BALANCE - CUMULATIVE PRIN PAID

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12
Q

REMAINING LOAN BALANCE - CUMPRINC

A

CUMULATIVE PRINCIPAL FOR REMAINING LOAN TERM

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13
Q

LOAN TERM VS AMORTIZATION TERM

A

LOAN TERM - PERIOD OF TIME LOAN WILL BE PAID BEFORE BECOMING DUE

AMORTIZATION TERM - TIME PERIOD USED TO CALCULATE LOAN PAYMENTS

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14
Q

2 LOAN AMORTIZATION FACTORS

A

IO PERIOD

LOAN TERM

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15
Q

LOAN BALANCE DEPENDS ON

A

LOAN TERM

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16
Q

LOAN BALANCE & LOAN TERM

A

IF ANNUALIZED PMT PERIOD > LOAN TERM; LOAN BALANCE = $0

17
Q

PRINCIPAL PMT DEPENDS ON

A

IO PERIOD

LOAN TERM

18
Q

PRINCIPAL PMT & IO PERIOD + LOAN TERM

A

IF PMT PERIOD > IO PERIOD & IF ANNUALIZED PMT PERIOD <= LOAN TERM; CALCULATE PRIN PMT

19
Q

AMORTIZATION TABLE - ORDER OF CALCULATIONS

A

BEGINNING BALANCE

PRINCIPAL PAYMENT

INTEREST PAYMENT

TOTAL PAYMENT

ENDING BALANCE

20
Q

BEG BALANCE - AFTER PERIOD 1

A

=IF(ANNUALIZED PMT PERIOD > LOAN TERM YRS,$0; PRIOR PERIOD END BAL)

21
Q

ANNUALIZED PMT PERIOD

A

= PMT PERIOD / 12

22
Q

PRIN PMT - FORMULA

A

=IF(AND(PMT MONTH > IO MONTHS, ANNUALIZED PMT PERIOD <= LOAN TERM), PPMT, 0)

23
Q

PPMT CALCULATION - PMT PERIOD

A

(PMT MONTH - IO MONTHS)

SUBTRACTING IO MONTHS FROM PMT MONTH TELLS EXCEL TO CALCULATE PRINCIPAL PMT STARTING AT THE CORRECT MONTH AFTER THE IO PERIOD ENDS

EX: IF PMT MONTH IS 13 & IO PERIOD IS 12 MONTHS (13 - 12 = 1); THE PRINCIPAL PMT CALCULATED FOR MONTH 13 WOULD BE BASED ON PRINCIPAL PMT THAT SHOULD BE MADE FOR PERIOD 1 OF AMORTIZING LOAN

24
Q

INTEREST PATMENT - FORMULA

A

= BEG BALANCE X PERIODIC RATE

25
Q

TOTAL PAYMENT - FORMULA

A

= PRINCIPAL PMT + INTEREST PMT

26
Q

ENDING BALANCE - FORMULA

A

= BEG BALANCE - PRINCIPAL PMT

27
Q

BALLOON PMT - FORMULA

A

=VLOOKUP(LOAN TERM X 12 MONTHS, TABLE ARRAY, END BAL COLUMN #, 0)

***MULTIPLYING LOAN TERM X 12 PINPOINTS THE LAST PAYMENT MONTH FOR THE LOAN; THIS IS WHERE THE BALLOON BALANCE WILL EXIST