Mac Works: Creating an Amortization Schedule
  
PSS ID Number: Q104807
Article last modified on 10-22-1998
 
3.0 4.0
 
MACINTOSH
 

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The information in this article applies to:
 
 - Microsoft Works for the Macintosh, version 3.0 and 4.0
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SUMMARY
=======
 
An amortization table can be created if more information is desired
than is provided by the built-in financial functions in Works. Works
3.0 also ships a template file named Mortgage Amortization with
preformatted cells. Works 4.0 ships with a template named Mortgage and Loan
Analysis.
 
MORE INFORMATION
================
 
The following is an example containing the necessary formulas for loan
amortization, where:
 
 - Loan Amount is the amount of your loan.
 - Interest Rate is the interest rate of your loan.
 - # of Months is the number of months you have to pay your loan.
 - Monthly Payment is the amount you pay each month.
 - Start Balance is your starting balance at the beginning of each
   period.
 - Int. for Month is the amount of interest for that month.
 - Payment is the actual amount you paid that month.
 - End Balance is your ending balance at the end of each period.
 
Example of Formulas for Loan Amortization
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   A1: Loan Amount:    B1:       $50,000     C1:         D1:
   A2: Interest Rate:  B2:            10%    C2:         D2:
   A3: # of Months:    B3:            48     C3:         D3:
   A4: Monthly Payment B4: =PMT(B2/12,B3,B1) C4:         D4:
   A5: Start Balance   B5: Int. for Month    C5: Payment D5:End Balance
   A6: =B1             B6: =A6*($B$2/12)     C6: =$B$4   D6: =A6+B6+C6
   A7: =D6             B7: =A7*($B$2/12)     C7: =$B$4   D7: =A7+B7+C7
   A8: =D7             B8: =A8*($B$2/12)     C8: =$B$4   D8: =A8+B8+C8
 
Fill down cells A7:D7 for as many rows as there are periods in the
loan. This procedure will create an amortization table that shows the
principal balance at the start of each period, the interest paid each
period, the payment, and the ending balance for each period.
 
If payments different from the normal monthly payment are made for
some months, the actual payment amount can be entered for that month.
The following interest amounts and balances will be adjusted
automatically. Another column can be added to show the principal paid
for the month.
 
The following formula will automatically show the interest paid each
month on a loan:
 
   =Payment-Int.for Month
 
KBCategory: kbother
KBSubcategory: macworkskb
 
Additional reference words: 3.00 mac
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Version           : 3.0 4.0
Platform          : MACINTOSH
Issue type        : kbhowto
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Copyright Microsoft Corporation 1998.