Hello,
Could you please tell me, how do I calculate annual interest rate if I know principal $ XX, number of periods (7 years) and I know that the maximum budget for interest rate is $ YY?
For example
I have to borrow $180,000 for 7 years and I know that maximum I can pay for the interest is $38,700. What is the annual interest rate that the bank should offer so that I don't have to pay more than $38,700 in interest
Welcome to the forum
This is based on compounding taking place once per year.
If it takes place more frequently, amend periods to reflect that
in B3
Formula:
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inB5
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In B8 copy down all the way to B14
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Interest.jpg
Last edited by Kevin#; 04-28-2016 at 03:26 AM.
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First of all, thank you for welcoming me to the forum! Secondly, I would like to thank you for this detailed calculation and visual explanation. This was very helpful!
Happy to help.
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thanks
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