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Impact of rising interest rates

In this example, the interest rates will rise by 0.25% every month, while the payment as calculated by the PMT() function remains the same. To calculate the correct closing balance, you will need to manually calculate the interest and principal balances every month.

Will there be negative amortization that will result in the loan never being paid off?

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练习说明

  • Enter the correct interest payments in column I for every month on the loan, using the annual new interest rate in column H.
  • Enter the monthly principal repayments in column J.

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