MODELING DEBT - LOAN TERMS Flashcards
PMT
CALCULATES CONSTANT LOAN PAYMENT
PMT - FORMULA
=pmt(periodic rate, total periods, -loan amount, $ fv)
IPMT
CALCULATES INTEREST PAYMENT FOR THE PERIOD
IPMT - FORMULA
=ipmt(periodic rate, period, total periods, loan amount)
PPMT
CALCULATES PRINCIPAL PAYMENT FOR PERIOD OF INTEREST
PPMT - FORMULA
=ppmt(periodic rate, period, total periods, loan amount)
CUMIPMT
CALCULATES CUMULATIVE INTEREST PAID FOR PERIODS OF INTEREST
CUMIPMT - FORMULA
=cumipmt(periodic rate, total periods, loan amount, beg period, end period, 0)
*LOAN AMOUNT MUST REMAIN POSITIVE FOR CALCULATION TO WORK
CUMPRINC
CUMULATIVE PRINCIPAL PAID FOR PERIODS OF INTEREST
CUMPRINC - FORMULA
=cumprinc(periodic rate, total periods, loan amount, beg period, end period, 0)
**LOAN AMOUNT MUST REMAIN POSITIVE TO CALCULATE CORRECTLY
REMAINING LOAN BALANCE - FORMULA
= ORIGINAL BALANCE - CUMULATIVE PRIN PAID
REMAINING LOAN BALANCE - CUMPRINC
CUMULATIVE PRINCIPAL FOR REMAINING LOAN TERM
LOAN TERM VS AMORTIZATION TERM
LOAN TERM - PERIOD OF TIME LOAN WILL BE PAID BEFORE BECOMING DUE
AMORTIZATION TERM - TIME PERIOD USED TO CALCULATE LOAN PAYMENTS
2 LOAN AMORTIZATION FACTORS
IO PERIOD
LOAN TERM
LOAN BALANCE DEPENDS ON
LOAN TERM