![]() I did it just to demonstrate a possible explanation.)įirst, the Truth In Lending Act specifies only the use of 365 in calculating the APR. IIRC, US lenders tend to use 365, regardless. IMHO, the use of rate/366 for days in leap years is questionable. True daily interest, 365 or 366 days a year Nevertheless, I would not expect a significant error. Moreover, any PMT must be rounded at least to the cent, subject to real-world requirements. It just means that PMT(rate/12, 10*12, -balance) can only be an estimate.Īnd the actual monthly payment must be detemined by using Goal Seek or Solver with an amortization schedule that depends on the current date. So the correct PMT usage is _not_ PMT(rate/365, 10*365, -balance). (*) But obviously the loan is still amortized monthly, when payments are made. Where 365.25 is the average days per year in any 4-year period. Where 30.4375 is the average days per month in any 4-year period. ![]() So we might estimate the actual remaining term in B5 as Some (non-authoritative) websites about federal student loans say that interest per month is calculated based on a daily rate (*). IMHO, that suggests that the remaining term is not the full 120 months. Yet you say that $5165.06 is the current "principal + accrued interest". Of course, $55.92 - $51.95 is indeed $3.97.īe that as it may, there is a lot of details in the OP that are suspicious.įirst, you say that the term is "10 years standard repayment plan". They are identifiable with a special user flair.Ī community since MaAsking a question? Describe if you are using Excel (include version and operating system!), Google Sheets, or another spreadsheet application.Īctually, it is $3.97 because you made a calculation or posting error w.r.t the results of your PMT calculation. Occasionally Microsoft developers will post or comment. Recent ClippyPoint Milestones !Ĭongratulations and thank you to these contributors Date Include a screenshot, use the tableit website, or use the ExcelToReddit converter (courtesy of u/tirlibibi17) to present your data. NOTE: For VBA, you can select code in your VBA window, press Tab, then copy and paste that into your post or comment. To keep Reddit from mangling your formulas and other code, display it using inline-code or put it in a code-block This will award the user a ClippyPoint and change the post's flair to solved. OPs can (and should) reply to any solutions with: Solution Verified
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