Calculate loan payment formula
The NPER function is configured as follows. For example if you take out a five-year loan for 20000 and the interest rate on the loan is 5 percent the simple interest formula works as follows.
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For this example we want to calculate the number of payments for a 5000 loan with a 45 interest rate and fixed payments of 9322.
. 20000 x 05 x 5 5000 in interest Orli. One use of the NPER function is to calculate the number of periodic payments for loan. Rate - The interest rate per period.
We divide the value in C6 by 12 since 45.
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