Excel. (algebra, I think) Finance
I don't know if this is possible, but I am needing to find missing values from my equation. I am trying to find the original amount and the total years of a loan. I have the rate (4.75%), I have the last two payments, showing the amount of interest paid and amount paid toward the principle. I have the amount left on the loan. can any one help?

Question

Excel.  (algebra, I think) Finance
I don't know if this is possible, but I am needing to find missing values from my equation.  I am trying to find the original amount and the total years of a loan.  I have the rate (4.75%), I have the last two payments, showing the amount of interest paid and amount paid toward the principle.  I have the amount left on the loan. can any one help?

mathmale · Answer

I used to know that stuff well.
Now I have to experiment to see what my aging memory turns up.
A = Amount
P = Principal
r = interest rate as a decimal = 0.0475
t = number of years over which the loan is repaid
n = number of times interest is compounded annually

A = P(1 + 0.0475/12)^(12t)

So, for you, P and t are the unknowns.  I've assumed that n = 12, because most mortgage loans require monthly payments.

The formula I've typed in is for the amount A that has accumulated).

Your situation involves the amount A that is left to be repaid, and you say you know this amount.

this is about as far as I can take you.

anonymous · Answer

Thank you!

mathmale · Answer

My pleasure.  Hope you eventually find the solution you want!