» Calculating Canadian Mortgage Payments
CATEGORY - Excel Financial Formulas
VERSION - All Microsoft Excel Versions
The following PMT formula calculates the monthly payment for a $100,000 mortgage, repaid over a period of 20 years, at 8% annual interest:
=PMT(8%/12,12*20,100000,0,0)
As Canadian interest rates are calculated semi-annually, rather than annually, the above formula will not calculate the payments correctly.
How can we modify the above PMT formula to calculate monthly payments for Canadian mortgages?
Solution:
With interest rate in column A, period (years) in column B, and mortgage sum in column C, use the PMT function as shown in the following formula:
=PMT((A2/2+1)^(2/12)-1,12*B2,C2,0,0)
Book Store:
Recommended Books:
- Microsoft Word Version 2002 Step By Step (With CD-ROM)
- Final Accounting: Ambition, Greed and the Fall of Arthur Andersen
- Essentials of Accounting and Post Test Booklet 8, Eighth Edition
- Word 2002: The Complete Reference
- Special Edition Using Microsoft Excel 2002
- The Guide to Understanding Financial Statements
No comments have been submitted.
