On May 3, 10:39 am, Joe <JoSc...@[EMAIL PROTECTED]
> wrote:
> I an manually plugin and change an interest rate in a
> mortgage program until the interest rate provides the
> same payment [...]. Is it a basic equation [....]?
No. If you have the payment amount, total funded
amount and the number of periods, there is no simple
formula for determining the interest rate. It is an
iterative process, much like the one that you did
manually.
Ostensibly, you can plug those values into the Excel
RATE function to get an answer. For example:
=12*RATE(60,-450,20000)
1/12th of that is the "money factor" -- that is,
simply RATE(60,-450,20000).
However, that is not really the interest rate (or
money factor) that is used for the financed part of
the lease payment. You need to factor in a number
of other amounts.
See the explanation on the following web pages:
http://www.leaseguide.com/lease08.htm
http://www.leaseguide.com/lease09.htm
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