GregoryQueen
New member
- Joined
- Mar 29, 2021
- Messages
- 7
The bank gave us a loan of 75,000 for 30 years. We pay 425.84 per month. How to calculate the interest rate per year? Please, give me advice and formula, Thank you.
Do you know the equation used for calculating monthly payments for a given loan amount, interest rate and loan-duration?The bank gave us a loan of 75,000 for 30 years. We pay 425.84 per month. How to calculate the interest rate per year? Please, give me advice and formula, Thank you.
I don't know the equation that can calculate the annual interest rate. I tried different ways but it always came out wrong. I don't know the equation that can calculate the annual interest rate.Do you know the equation used for calculating monthly payments for a given loan amount, interest rate and loan-duration?
Please show us what you have tried and exactly where you are stuck.
Please follow the rules of posting in this forum, as enunciated at:
Please share your work/thoughts about this problem.
Well you certainly can validate or invalidate it.Do you want me to show you my miscalculation here?
The result of this calculation is 5.5% per year, but I don't know how to calculate it.
There is no CLOSED FORM equation. It is solved through iterative method.I don't have problem doing this in excel or calculator.
You mean the formula for calculating this exercise doesn't exist?
I told you in post 5 that excel could approximate it. I also said that excel used a “so called” formula. It is not a closed form formula; it invokes an iterative algorithmI don't have problem doing this in excel or calculator.
You mean the formula for calculating this exercise doesn't exist?
Beer soaked ramblings follow.
Did you not notice the first excel screenshot where I highlighted the “so called” formula format that JeffM intimated at post #13. The 2nd screenshot was merely for show to let you know that you are to plug the value of x into the amortization expression to assure yourself that you will get the loan amount should you do so.From which calculation do you get this interest?
I mean 0,0045833023239915
Beer soaked ramblings follow.
Did you not notice the first excel screenshot where I highlighted the “so called” formula format that JeffM intimated at post #13. The 2nd screenshot was merely for show to let you know that you are to plug the value of x into the amortization expression to assure yourself that you will get the loan amount should you do so.
Things like the interest rate implied by the amount of the periodic payment, the original principal,and the number of periodic payments are not calculated by a formula as you understand it. They can be APPROXIMATED by something called a numerical method or iterative process, which are sophisticated versions of trial and error. They are a royal pain in the ass to do by hand, but computers do them readily.So, interest in Excel is calculated automatically? Don't you know how to calculate them?
I seem in the first first screenshot you highlighted the result from second screenshot.
If the "x" in the second screenshot is interest rate (which I'm looking for), then I don't need interest which is "i" in the fist screenshot.
Don't you read what volunteer helpers here are trying to tell you?So, interest in Excel is calculated automatically? Don't you know how to calculate them?
Mind your grammar.I seem in the first first screenshot you highlighted the result from second screenshot.
The nominal rate compounded monthly is `j` (1st screenshot) and `i` (1st screenshot) is the effective monthly rate (x in the 2nd screenshot). How would you know how much interest you'll pay per month on the outstanding balance of your loan if you don't know what `i` is?If the "x" in the second screenshot is interest rate (which I'm looking for), then I don't need interest which is "i" in the fist screenshot.
Hi if you want a quick and simple answer in Excel just use this formulaThe bank gave us a loan of 75,000 for 30 years. We pay 425.84 per month. How to calculate the interest rate per year? Please, give me advice and formula, Thank you.