A question a mortgage holder might ponder: “When I go to refinance after 5 years, how much will I still owe?”<\/p>\n
From Microsoft Excel, help is available in the form of the cumprinc()<\/span> function.<\/p>\n Example:<\/strong><\/p>\n Imagine a mortgage as follows: <\/p>\n What is the remaining balance after 5 years?<\/p>\n Solution:<\/p>\n The cumprinc()<\/span> function has the following format:<\/p>\n cumprinc(int_per_period, num_periods, present_value, first_period, last_period, when)<\/p>\n In a cell, the cumprinc()<\/span> function can be entered as follows:<\/p>\n =cumprinc(0.046\/12,12*25,150000,1,60,0)<\/span><\/p>\n Hopefully, you’ll receive the result<\/p>\n -17992.7<\/span><\/p>\n which means the original balance of 150000 has been reduced by 17992.70. The amount owing after the first five years, therefore, is<\/p>\n 150000-17992.70=132007.30<\/span><\/p>\n To do it all in one step, one could enter, in a cell,<\/p>\n =150000 + cumprinc(0.046\/12,12*25,150000,1,60,0)<\/span><\/p>\n The + sign is used because cumprinc()<\/span> returns an opposite-signed result from the principal.<\/p>\n HTH:)<\/p>\n\n
Observations:<\/h1>\n
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