Greetings
I have a question regarding the NPER function when you have a different compounding period of interest on the loan and a different periodic payment you make on that loan.
Loan: $5,000
Interest Compounded: Daily
Annual Interest Rate on Loan: 10%
Loan Period Compound Rate (based on daily or 365 days): 10%/365 = 0.000273%
My Periodic Payment: $50 (I can choose how much I wish to pay)
Period Payments: 4, Quarterly (this means I can choose to pay how many times I wish during the year, in this case, I choose to pay $50 each quarter, or $50, 4 times per year)
I wanted to know, how many quarterly payments I need to make in order to pay off the $5,000 loan at an interest rate of 10% compounded daily?
I tried this in the NPER function,
=NPER(0.000273%,-50*4,-5000,,) = 24.9
The answer it gave me was 24.9 which meant 24.9 quarterly periods, 24.9 x 4 x $50 = $4,982, it is not even close to $5,000 much less taking into account the interest.
Look forward to hearing from you all, thank you for taking the time to read this, much appreciated.
I have a question regarding the NPER function when you have a different compounding period of interest on the loan and a different periodic payment you make on that loan.
Loan: $5,000
Interest Compounded: Daily
Annual Interest Rate on Loan: 10%
Loan Period Compound Rate (based on daily or 365 days): 10%/365 = 0.000273%
My Periodic Payment: $50 (I can choose how much I wish to pay)
Period Payments: 4, Quarterly (this means I can choose to pay how many times I wish during the year, in this case, I choose to pay $50 each quarter, or $50, 4 times per year)
I wanted to know, how many quarterly payments I need to make in order to pay off the $5,000 loan at an interest rate of 10% compounded daily?
I tried this in the NPER function,
=NPER(0.000273%,-50*4,-5000,,) = 24.9
The answer it gave me was 24.9 which meant 24.9 quarterly periods, 24.9 x 4 x $50 = $4,982, it is not even close to $5,000 much less taking into account the interest.
Look forward to hearing from you all, thank you for taking the time to read this, much appreciated.