Microsoft Office Tutorials and References
In Depth Information
To Enter the Formulas in the Amortization Schedule
Click the Enter box
in the formula bar
to insert the formula
(Figure 4–37).
What happens when
the Enter box is
Excel evaluates the
IF function in cell I3
and displays the
result of the PV
because the value
in cell G3 (1) is less
than or equal to the
term of the loan in
cell E3 (18). With cell
I3 active, Excel also
displays the formula
in the formula bar.
If the borrower
wanted to pay off
the loan after one
year, the cost would
be $227,326.79.
Excel automatically
capitalizes all cell
references after
function is entered
cell I3 assigned
ending balance
(present value) of
loan after year 1
Figure 4–37
Select cell J3. Type
=h3 – i3 and then
press the RIGHT
ARROW key.
Type =if(h3 > 0,
12 * $e$4 – j3,
0) in cell K3 to
display the amount
paid on the prin-
cipal after 1 year
($7,673.21) in cell
J3, using the same
format as in cell H3
(Figure 4–38).
if beginning value
is greater than 0,
show interest paid
for year; else show 0
beginning balance
minus ending
balance, or H3 – I3
Excel automatically
assigns format of
cell H3 to cell J3
Figure 4–38
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