PMT formula with multiple interest rate

[shivanimanna]

Hello

I would like to use the PMT formula to calculate interest rate in situation where interest rate is changing.

For example
Loan Amount = 100,000
Initial Interest Rate = 5% for 24 months
which reverts to 8% for next 276 months

EMI for first 2 years = PMT (0.05/12, 24, 100000, FUTURE_VALUE)
EMI for next 23 years = PMT (0.08/12, 276, FUTURE_VALUE, 0)

 

[shivanimanna]

I am considering to calculate EMI_1 as below:

EMI for first 2 years = PMT (0.05/12, 300, 100000)

 

[shivanimanna]

I am considering to calculate EMI_1 as below:

EMI for first 2 years = PMT (0.05/12, 300, 100000)

I will really appreciate some help on how can I calculate the EMI for the remaining 23 years.

EMI for remaining 23 years = PMT (0.08/12, 300, ???)

 

[MickG]

Try:-

£584.59	=PMT(0.05/12,300,-100000)	Pmt for 24 mths
£95,770.70	=FV(0.05/12,24,584.59,-100000)	Remaining value @ 24 Mths
£759.90	=PMT(0.08/12,276,-95770.7)	Pmt for 276 Mths

<colgroup><col width="79" style="width: 59pt; mso-width-source: userset; mso-width-alt: 2816;"> <col width="217" style="width: 163pt; mso-width-source: userset; mso-width-alt: 7708;"> <col width="215" style="width: 161pt; mso-width-source: userset; mso-width-alt: 7651;"> <tbody> </tbody>