ASSIGNMENT 01

COMPUTER LITERACY AND APPLICATION

ISM 12023

LOAN AMORTIZATION SCHEDULE

LECTURE IN CHARGE: MM.SHIRAJ

SUBMITTED BY:

SM.SAJIR

SEU/IS/11/MG/020

FIRST YEAR, SEMESTER-02

19-02-2014

SOUTH EASTERN UNIVERSITY OF SRI LANKA

Loan Amortization Schedule We use the PMT function to calculate the monthly payment on a loan.

PMT function:-

=PMT (Annual Interest Rate/ Payments Per Year, Loan Period Years * Payments Per Year, Loan Amount)

First you have enter loan details like this,

Here we can find beginning balance in B8 cell entering the formula “=B1”

Next we are going to find ‘SCHEDULED PAYMENT’

Scheduled payment formula is,

=PMT(Annual Interest Rate/ Payments Per Year, Loan Period Years * Payments Per Year, Loan

Amount)

Blow this picture clearly showing that formula and we have to give absolute reference also for each

cells

Next we have to calculate PRINCIPAL payment in scheduled payment

Here we can use the PPMT function to calculate the principal part of the payment.

PRINCIPAL payment function is,

=PPMT(Annual Interest Rate/ Payments Per Year, Payment Number ,Loan Period Years *

Payments Per Year, Loan Amount)

Below the picture showing the formula clearly, and we have to give absolute reference each calls

without PAYMENT NUMBER cell.

Next we have to calculate INTEREST in scheduled payment.

Here we can use the IPMT function to calculate the interest part of the payment.

INTEREST formula is,

=IPMT(Annual Interest Rate/ Payments Per Year, Payment Number ,Loan Period Years * Payments

Per Year, Loan Amount)

Below the picture showing the formula clearly, and we have to give absolute reference each calls

without PAYMENT NUMBER cell.

Next we have to find ENDING BALANCE

We can easily find ending balance subtract PRINCIPAL from the BEGINNING BALANCE

ENDING BALANCE = BEGINNING BALANCE – PRINCIPAL

Below the picture showing the action clearly.

Next

Select the range A8:F8 (first payment) and drag it down one row.

Below the picture showing this action clearly

Next

Change the BEGINNING BALANCE formula at payment number two.

B9 cell equal F8

Below the picture showing this action clearly

Next

Select the range A9:F9 (second payment) and drag it down row 103.

Below the picture showing this action clearly

After this action we can find payments automatically

Below pictures showing the actions

Next

We want to calculate scheduled payment and number of payment

Using this formula we can find scheduled payment.

=PMT (Annual Interest Rate/ Payments Per Year, Loan Period Years * Payments Per Year, Loan

Amount)

Below the picture showing the function.

Next

We want to find number of payment

We can easily find number of payment multiple by loan period years and number of payment per

year.

NUMBER OF PAYMENT = LOAN PERIOD YEARS * NUMBER OF PAYMENT PER YEAR

Below the picture showing this function.

After this, when you change the loan amount or interest or year or payment per year, the results

will be automatically changed.