![]() ![]() Set the "Amount" to "Unknown" by typing "U".We will also assume that the monthly payment is calculated based on a 30-year (360 monthly payments) loan. For this example, we will assume we want to create a schedule for a mortgage that has a balloon payment which is due after 5 years (at the 60th monthly payment). Move to the second row of the cash flow input area.If a frequency is set, it will be cleared when you leave the row Note: Since the number of periods is 1, you will not be able to set a frequency.In row one of the cash flow input area, create a "Loan" series.Enter 6.75 for the "Initial Interest Rate".Set "Initial Compounding" to "Monthly".For "Calculate Method" select "Normal".In the header section, make the following settings:.Set "Rounding" to "Open balance - no adjustment" by clicking on the.Or click the button to clear any previous entries.To create a loan schedule when the balloon payment amount is unknown, follow these steps: Many financial calculators on the web frankly get this wrong.Īll users should work through the more detailed first tutorial to understand the Ultimate Financial Calculator's ( UFC) basic concepts and settings. The latter question is asking what is the loan balance after the payment has been made and there is no accrued interest due. The former question is asking what the payment amount due is at period 48 including the accrued interest. Note: Asking the questions "What it the balloon payment at period 48?" and "What is the remaining balance at period 48?" are two different questions and a financial calculator should calculate two different results. This tutorial illustrates the setup to solve this This case, is known as a balloon payment. Time allotted, the final payment will be larger than the periodic payment. When the periodic payments is not large enough to fully amortize a loan in the Calculate balloon payment for a mortgage or loan due after a series of regular ![]()
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