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Posted: 7/14/2014 2:20:50 PM EDT
Link Posted: 7/14/2014 2:34:48 PM EDT
[#1]
I've done it by creating an amortization schedule on excel.  Then adding a column in for added principle payments.

There is a pmt function in excel that will calculate the monthly pmt based on principle, interest and no. pmts.  That will get you the monthly pmt.

The interest portion of your pmt can be calculated by the apr/12 x principle amount.  The principle paid then is then the monthly pmt less the interest portion.  

You can build up the amortization table from there.  The monthly interest will always be the remaining principle x the APR/12
Link Posted: 7/22/2014 8:29:21 AM EDT
[#2]
However, it sounds like the interest isn't just compounding monthly since he's able to split the payment up each month.  OP, check your paperwork, does the interest compound daily to have an effective APR?  If so, you'd have to take this into account to properly reduce the principle with each payment and compound the interest correctly.


ETA: In case you need some of the forumulas: http://www-old.me.gatech.edu/jonathan.colton/me4210/fe_engineering_economics.pdf

My understanding is that most of that is already in Excel, but since I haven't used Excel for an exercise like this, I can't comment specifically.
Link Posted: 7/22/2014 1:01:50 PM EDT
[#3]
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