I'm trying to figure this formula out...

[Al Neri]

i'm doing this for a friend of mine.

Balance: 5000
Rate: .06
Months (nPer): 24
Payment per month: X

how do i calculate this?

(5000-(5000/24)*1.06)^24?

 

[giantpinkbunnyhead]

Are you trying to find out what payment will pay this off in 24 months?

 

[Al Neri]

yeah payment (per month)

 

[minendo]

=pmt

 

[Al Neri]

it for a credit card

 

[fuzzybabybunny]

=PMT(rate, nper, balance, ending balance)

 

[giantpinkbunnyhead]

OK, use this formula for Excel:

=PMT(A2/12,A3,A1)

Where A2 = your rate; A3 = number of periods, and A1 = original balance.

In your case:

=PMT(.06/12,24,-5000)

to get a payment of 221.60

 

[Al Neri]

nice!! thanks minendo!

 

[ChaoZ]

I got a payment of $362.35
Maybe I did something wrong.

 

[giantpinkbunnyhead]

Originally posted by: ChaoZ
I got a payment of $362.35
Maybe I did something wrong.

LOL sounds like you rated the problem at 60% instead of 6%.... ouch!

 

[ChaoZ]

Originally posted by: giantpinkbunnyhead

Originally posted by: ChaoZ
I got a payment of $362.35
Maybe I did something wrong.

LOL sounds like you rated the problem at 60% instead of 6%.... ouch!

That .0 always screw me over.

 

[giantpinkbunnyhead]

Originally posted by: ChaoZ

Originally posted by: giantpinkbunnyhead

Originally posted by: ChaoZ
I got a payment of $362.35
Maybe I did something wrong.

LOL sounds like you rated the problem at 60% instead of 6%.... ouch!

That .0 always screw me over.

No kidding... I remember on a physics test, I incorrectly answered 5.4% to a question whose answer was 0.54%. There were only 3 questions on this test, and this gaffe earned me a D vs. an A. Sooo, I asked the prof. about it and protested that it was just a decimal point error, and he says, "Tell that to the astronauts headed to Jupiter instead of the moon!" Made me laugh.