Help with a Debt / Variable Payment Question

Marl

New Member
Joined
Apr 1, 2006
Messages
5
A part of a larger financial model I have the following problem.

The debt period is 15 years with the cash available for debt service in a row with amounts for each annual period (15 cells). The cash available for debt service is consistent for the first 10 years and then declines significantly to a consistent value for the remaining 5 years. Using PPMT and IPMT functions I calculate the periodic principal, interest, declining balance, etc.

I want to optomize the debt load to achieve maximum debt without exceeding the value of cash available for debt service in either the first ten years or the remaining 5 years. How can I alter payment structure bring about a payment reduction in year 11 that is proportional to the reduction in cash available for debt service?

Any suggestions would be appreciated.
 

Excel Facts

Add Bullets to Range
Select range. Press Ctrl+1. On Number tab, choose Custom. Type Alt+7 then space then @ sign (using 7 on numeric keypad)

plettieri

Well-known Member
Joined
Sep 4, 2002
Messages
1,556
Platform
  1. MacOS
Hi Marl:


Have you looked at the 'goal seek' function found under the tools menu bar?

plettieri
 

Forum statistics

Threads
1,136,266
Messages
5,674,725
Members
419,522
Latest member
bizhani

We've detected that you are using an adblocker.

We have a great community of people providing Excel help here, but the hosting costs are enormous. You can help keep this site running by allowing ads on MrExcel.com.
Allow Ads at MrExcel

Which adblocker are you using?

Disable AdBlock

Follow these easy steps to disable AdBlock

1)Click on the icon in the browser’s toolbar.
2)Click on the icon in the browser’s toolbar.
2)Click on the "Pause on this site" option.
Go back

Disable AdBlock Plus

Follow these easy steps to disable AdBlock Plus

1)Click on the icon in the browser’s toolbar.
2)Click on the toggle to disable it for "mrexcel.com".
Go back

Disable uBlock Origin

Follow these easy steps to disable uBlock Origin

1)Click on the icon in the browser’s toolbar.
2)Click on the "Power" button.
3)Click on the "Refresh" button.
Go back

Disable uBlock

Follow these easy steps to disable uBlock

1)Click on the icon in the browser’s toolbar.
2)Click on the "Power" button.
3)Click on the "Refresh" button.
Go back
Top