Loan Amortization Model

Loan Amount
8

Interest Rate
Loan Repayment Period
EMI

100
8%
6
1.75

21

###

Effective rate

Compounding frequency
Annually
Semi-Annually
Quarterly
Monthly
Weekly
Daily

Compoundng periods

Nominal annual
1
2
4
12
52
365

10.00%
10.00%
10.00%
10.00%
10.00%
10.00%

Effective annual
10.00%
10.25%
10.38%
10.47%
10.51%
10.52%

Conversion back to nominal

10.00%
10.00%
10.00%
10.00%
10.00%
10.00%

Future value of cash flows

A
Money Market fund
B
Long term bond fund
C
Conservative common stock fun
D
Aggressive common stock fund

3600
5%
8%
10%
14%
Amt

Yearly contribution
Quarterly
Montly contribution
Weekly contribution

Yearly
Monthly
Weekly

Periods
3,600
900
300
69

35
140
420
1820

5%
###
340,827.73
###

8%
###
###
###

5%
0.05
0.0125
0.00416667
0.00096154

10%
975,687.73
###
###

8%
0.08
0.02
0.01
0.00

14%
2,496,861.73
3,330,885.45
3,404,789.35

10%
0.10
0.03
0.01
0.00

14%
0.14
0.04
0.01
0.00

Present value of cash flows

Period
1
2
3
4
5

Cash Flow
12000
10000
8000
6000
4000

Interest rate

12%

Present value of an annuity

Investment 1
Interest rate
Time(years)
Yearly investment

12%
15
10000

Which of the investments gives me the highest value in today's term

68,108.64

PV
###
$7,971.94
$5,694.24
$3,813.11
$2,269.71
###

Investment 2
Interest rate
Time(years)
Quarterly amount

10%
20
3000

###

Investment 3
Interest rate
Time (years)
Montly Amount

8%
30
1000

###

Future value
Loan
Time period

5,00,000
25000
10

15%

Present value 25000

Loan
21000
Time
1
16.00%

Loan amount
Rate
PMT

10.7984613808

100000.00
12%
5000

Investment Date
Nominal rate(APR)
Term(Years)

6% Deposit frequency
10 Deposits per year
Compounding
-100000 frequency
Compounds per
-5000 year
Effective rate per
0 period
Total periods

Initial deposit
Periodic deposits
Deposit type

Interest
earned

Period
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37

1,510.43
1,608.76
1,708.58
1,809.91
1,912.77
2,017.18
2,123.17
2,230.76
2,339.98
2,450.85
2,563.38
2,677.62
2,793.59
2,911.31
3,030.80
3,152.10
3,275.23
3,400.22
3,527.10
3,655.90
3,786.64
3,919.36
4,054.08
4,190.83
4,329.65
4,470.57
4,613.62
4,758.82
4,906.22
5,055.85
5,207.74
5,361.92
5,518.43
5,677.30
5,838.57
6,002.28
6,168.46

Cumulative
interest
1,510.43
3,119.19
1,708.58
1,809.91
1,912.77
2,017.18
2,123.17
2,230.76
2,339.98
2,450.85
2,563.38
2,677.62
2,793.59
2,911.31
3,030.80
3,152.10
3,275.23
3,400.22
3,527.10
3,655.90
3,786.64
3,919.36
4,054.08
4,190.83
4,329.65
4,470.57
4,613.62
4,758.82
4,906.22
5,055.85
5,207.74
5,361.92
5,518.43
5,677.30
5,838.57
6,002.28
6,168.46

3
4
5
52
0.0151042868
40

Cumulative
deposit
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
85000
90000
95000
100000
105000
110000
115000
120000
125000
130000
135000
140000
145000
150000
155000
160000
165000
170000
175000
180000
185000

Total increase
6,510.43
13,119.19
16,708.58
21,809.91
26,912.77
32,017.18
37,123.17
42,230.76
47,339.98
52,450.85
57,563.38
62,677.62
67,793.59
72,911.31
78,030.80
83,152.10
88,275.23
93,400.22
98,527.10
103,655.90
108,786.64
113,919.36
119,054.08
124,190.83
129,329.65
134,470.57
139,613.62
144,758.82
149,906.22
155,055.85
160,207.74
165,361.92
170,518.43
175,677.30
180,838.57
186,002.28
191,168.46

38
39
40

6,337.15
6,508.39
6,682.22

6,337.15
6,508.39
6,682.22

190000
195000
200000

196,337.15
201,508.39
206,682.22

Annually
Semi annually
Quarterly
Monthly
Weekly
Daily

Future value
106,510.43
113,119.19
119,827.78
126,637.69
133,550.46
140,567.65
147,690.82
154,921.59
162,261.57
169,712.41
177,275.80
184,953.42
192,747.01
200,658.32
208,689.12
216,841.22
225,116.45
233,516.67
242,043.78
250,699.67
259,486.31
268,405.67
277,459.75
286,650.58
295,980.23
305,450.80
315,064.42
324,823.24
334,729.46
344,785.31
354,993.05
365,354.97
375,873.39
386,550.69
397,389.26
408,391.55
419,560.01

 430,897.16
442,405.56
454,087.78

Taking inflation into account

Interest
rate(annual)
Term(years)

8%
10

Deposit per month

Initial deposit
Deposit type
Futive value

-1000
-100000
0
404,910.06

Inflation rate

5%
248,579.65

Period
0
1
2
3
4
5

Cash flow
-10000
1/1/2011
2000
6/1/2011
2500
1/5/2012
3000
7/7/2012
2500 12/25/2012
2000 1/21/2013
245.1889

Anticipated Return
cost Borrowing

0.12
10%

PeriodCash Flows
0
-247,500
1
12,917
2
12,917
3
12,917
4
12,917
5
12,917
6
12,917
7
12,917
8
12,917
9
12,917
10
12,917
11
12,917
12
12,917
13
12,917
14
12,917
15
12,917
16
12,917
17
12,917
18
12,917
19
12,917
20
12,917
21
12,917
22
12,917
23
12,917
24
12,917

IRR Opening Balance EMI

Interest
asit:
1.89% Formula
Col
in cell
A C2 is Col BC=0.0189*Col A
"=IRR(B2:B26,0.01)"
-247,500 -12,917
-4,667
-239,250 -12,917
-4,511
-230,845 -12,917
-4,353
-222,281 -12,917
-4,191
-213,556 -12,917
-4,027
-204,666 -12,917
-3,859
-195,609 -12,917
-3,688
-186,380 -12,917
-3,514
-176,978 -12,917
-3,337
-167,399 -12,917
-3,157
-157,639 -12,917
-2,972
-147,694 -12,917
-2,785
-137,563 -12,917
-2,594
-127,240 -12,917
-2,399
-116,722 -12,917
-2,201
-106,007 -12,917
-1,999
-95,089 -12,917
-1,793
-83,965 -12,917
-1,583
-72,632 -12,917
-1,370
-61,085 -12,917
-1,152
-49,320 -12,917
-930
-37,333 -12,917
-704
-25,121 -12,917
-474
-12,678 -12,917
-239
Annual IRR

25.1%

asit:
Formula in cell E28 is
"=(1+ cell C2)^12 - 1"

Principal Repaid
Closing Balance
Col D=Col B- Col C
A-D
-8,250
-239,250
-8,405
-230,845
-8,564
-222,281
-8,725
-213,556
-8,890
-204,666
-9,057
-195,609
-9,228
-186,380
-9,402
-176,978
-9,580
-167,399
-9,760
-157,639
-9,944
-147,694
-10,132
-137,563
-10,323
-127,240
-10,517
-116,722
-10,716
-106,007
-10,918
-95,089
-11,124
-83,965
-11,333
-72,632
-11,547
-61,085
-11,765
-49,320
-11,987
-37,333
-12,213
-25,121
-12,443
-12,678
-12,678
0

ula in cell E28 is

+ cell C2)^12 - 1"

-1