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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

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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 in B9 to monthly values.
  • Adjust the number of periods and interest rate in the PPMT() and IPMT() formulas in C9:D9 to monthly values.
  • Copy the PPMT() and IPMT() formulas down to the rest of the schedule.

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