Paying Off Your Mortgage: How To Run The Numbers - 0 views

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  #1 Wilcox Bennedsen on 06 Oct 13

   

  If you have Microsoft Excel operating on your pc at home or work, you can use Excels NPER function to calculate how rapidly you can pay off a loan such as a mortgage.
  
  The NPER function calculates the phrase, or quantity of standard payments, on a loan given its interest rate, payment amount, present loan balance, balloon payment (if any), and, optionally, the variety-of-annuity switch.
  
  The type-of-annuity switch is a tiny difficult, but here's how it works. Open Site In New Window contains more concerning where to acknowledge this concept. If you set the variety-of-annuity switch to 1, Excel assumes payments happen at the starting of the period, following the annuity due convention. If you set the annuity switch to or you omit the argument, Excel assumes payments take place at the end of the period following the ordinary annuity convention.
  
  But let me show you how the function functions in theory and in practice. All of this will become rather clear, I am confident.
  
  The function utilizes the following syntax:
  
  =NPER(rate,pmt,pv,fv,variety)
  
  For instance, to calculate the number of $1,000 monthly payments necessary to spend off a 9% mortgage that nevertheless has a $one hundred,000 mortgage balance, you enter the following formula into an Excel worksheet cell:
  
  =NPER(.09/12,-1000,100000,,)
  
  The function returns the value 185.53, representing roughly 185 payments and then another roughly half payment. We learned about patent pending by searching the Internet. Notice that to convert the 9% annual interest to a period interest, the formula divides the annual interest rate by 12. Navigating To resource 4 retirement seemingly provides lessons you should give to your dad. Notice, too, that the payment quantity, as a cash outflow, shows as a unfavorable value although the loan balance, as an implicit money inflow, shows as a positive value.
  
  One particular final note: The NPER function hardly ever returns an integer, or complete-quantity result. As in the preceding instance, it commonly returns a fractional value, indicating that following the last regular payment, an extra fractional payment will also require to be made. To get another viewpoint, please have a look at: life insurance annuities.

   

  <div class="cArrow"> </div><div class="cContentInner">If you have Microsoft Excel operating on your pc at home or work, you can use Excels NPER function to calculate how rapidly you can pay off a loan such as a mortgage. <br /> <br /> The NPER function calculates the phrase, or quantity of standard payments, on a loan given its interest rate, payment amount, present loan balance, balloon payment (if any), and, optionally, the variety-of-annuity switch. <br /> <br /> The type-of-annuity switch is a tiny difficult, but here's how it works. <a rel="nofollow" href="http://cover-z.info/?p=170">Open Site In New Window</a> contains more concerning where to acknowledge this concept. If you set the variety-of-annuity switch to 1, Excel assumes payments happen at the starting of the period, following the annuity due convention. If you set the annuity switch to or you omit the argument, Excel assumes payments take place at the end of the period following the ordinary annuity convention. <br /> <br /> But let me show you how the function functions in theory and in practice. All of this will become rather clear, I am confident. <br /> <br /> The function utilizes the following syntax: <br /> <br /> =NPER(rate,pmt,pv,fv,variety) <br /> <br /> For instance, to calculate the number of $1,000 monthly payments necessary to spend off a 9% mortgage that nevertheless has a $one hundred,000 mortgage balance, you enter the following formula into an Excel worksheet cell: <br /> <br /> =NPER(.09/12,-1000,100000,,) <br /> <br /> The function returns the value 185.53, representing roughly 185 payments and then another roughly half payment. We learned about <a rel="nofollow" href="http://www.eventbrite.com/org/4738842307">patent pending</a> by searching the Internet. Notice that to convert the 9% annual interest to a period interest, the formula divides the annual interest rate by 12. Navigating To <a rel="nofollow" href="http://www.freegamealliance.com/wiki/doku.php?id=How_To_Use_Equity_in_Your_Favor">resource 4 retirement</a> seemingly provides lessons you should give to your dad. Notice, too, that the payment quantity, as a cash outflow, shows as a unfavorable value although the loan balance, as an implicit money inflow, shows as a positive value. <br /> <br /> One particular final note: The NPER function hardly ever returns an integer, or complete-quantity result. As in the preceding instance, it commonly returns a fractional value, indicating that following the last regular payment, an extra fractional payment will also require to be made. To get another viewpoint, please have a look at: <a rel="nofollow" href="http://www.at52.com/benefits-of-entire-life-insurance-coverage-how-to-get-them/">life insurance annuities</a>.</div>

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