Adjusting for annual periods
This exercise continues from the prior exercise, but will need to be adjusted to replace the interest rate with annual interest rate and the periods with years. Changing these values makes it easier to compare loans against each other, but formulas will need to be changed to accurately reflect the prorated terms.
The loan is a $500,000 principal at 6% annual interest rate for 5 years, paid monthly.
This exercise is part of the course
Loan Amortization in Google Sheets
Exercise instructions
- Adjust the interest rate and periods in
B4:B5
to annual values. - Adjust the number of periods and interest rate in the
PMT()
formula inB9
to monthly values. - Adjust the number of periods and interest rate in the
PPMT()
andIPMT()
formulas inC9:D9
to monthly values. - Copy the
PPMT()
andIPMT()
formulas down to the rest of the schedule.
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