Calculating Loans

Cardinal-Red

Hi there - I've been working on this for ages and can't get anywhere with it. Is there anyway I can work out what principal sum I can borrow, at an APR of 7.3%, over 6 years, resulting in a monthly payment of £440? I've tried messing in Excel but I can't get anywhere with it - so maths experts needed! :beer:

Racklen

there is a loan amortization calcualtor on the internet ( we use it at work sometimes)

ill try and find it

Cardinal-Red

Cheers fella - I did some trial and error with Excel and got around £26000 - that's close enough for me to know it's not worth it for my purposes. Thanks for your reply though...

Racklen

http://ray.met.fsu.edu/~bret/amortize.html

try this

Racklen

http://ray.met.fsu.edu/cgi-bin/amortize

still get advise from a professional as i am not a professional in money lending

lewyboy

Ok.

Take the amount you need to borrow.

Multiply by the flat rate - roughly half the APR rate.

Multiply this figure by the number of years you want the loan for.

Add the loan amount.

Divide by the months that you have chosen.

Not exactly what you asked for but you could jiggle the above to fit your query.

lewyboy

Short answer, £26k would be about right!