Ann, The formula for simply doing this on a calculator is pretty complex. Haven't used it in years and don't remember it. But Microsoft Excel has simple functions to do this. The first is:
PMT(rate,number of payments, present value, future value). Rate is the interest rate per period (not APR). In your example, it is 0.5% or 0.005. Number of payments would be, in your example, 360, assuming monthly payments for 30 years. Present value is the amount of the loan, e.g., $100,000. Future value, in this case, will be $0, since the loan will be payed off then. So the formula should look like this: PMT(0.005,360,100000,0) The result is $599.55, which will be your monthly mortgage payment. As for your other question, The Excel function is: PV(rate,number of payments, payment,future value,type) The first two function arguments are the same as above. "payment", of course, is your desired monthly payment and "type" is optional and doesn't apply to what you are doing. The formula for your example should look like this: PV(0.005,360,1000,0) The result is: $166,791.61, which is the amount of money you can borrow for a period of 30 years at 6.0% interest that will result in a monthly payment of exactly $1,000.00 Hope this has been helpful. Darrin Darrin Porter Senior Technical Engineer United Ocean Services, L.L.C. 601 South Harbour Island Boulevard, Suite 230 Tampa, Florida 33602 (813) 209-4247 (office) (813) 744-0011 (cellular phone) (813) 242-4849 (fax) [email protected] -----Original Message----- From: [email protected] [mailto:[email protected]] On Behalf Of Ann M. Medlar Sent: Monday, June 29, 2009 10:25 AM To: JawsUsersList Subject: [JAWS-Users] Calculator Hi folks, Does anyone know how to use calculator to do following: I think it is amortization. Mortgage $100,000 at 6% for 30 years What is monthly payment? or Want to pay $1,000 for 30 years at 6% how much can I borrow? Can someone walk me through procedure to use calculator? Thanks, Ann For answers to frequently asked questions about this list visit: http://www.jaws-users.com/help/ Attention: This email and any accompanying attachments constitute confidential and/or legally privileged information. If you have received this email communication in error, please notify the sender immediately and delete the message and any attachments from your system. For answers to frequently asked questions about this list visit: http://www.jaws-users.com/help/
