Thanks for the video. But what is the interest formula for bi-weekly payment?
@anitapetrova4317 Жыл бұрын
This was great. I am teaching my 16 yo daughter, who just got her first car, what is amortization schedule, and why it is important to understand it. This was perfect example for her to see what extra payments to the principal can do.
@SixMinutesSmarter Жыл бұрын
Glad it was helpful! Show her a FV calculation, too. Finish the car payments quickly and put that money into some Vanguard funds.
@digitalhorizons Жыл бұрын
It's been said that you can pay this type of schedule off faster by splitting the payment in half and paying it twice a month (NOT bi-weekly thus resulting in a 13th payment). However, I am having trouble seeing this as the rate is divided by 12 and not 365 or 366 (ie. daily). Is there something I am missing here?
@ngee49253 жыл бұрын
Super helpful as always Ralph, thank you!
@MarmikPanchal3 ай бұрын
This example does not include days on which the loan was funded to the date of first payment.
@jesus-b5w8e Жыл бұрын
i dont know if car dealership gonna let you pay in advanced. I heard they dont.
@fidelnacienceno91583 жыл бұрын
I can’t make my spreadsheet auto populate any of the months, I literally have to do each myself
@thelaxboy223 жыл бұрын
Me too
@PacMappy2 жыл бұрын
if it has not been answered already, three cells have to follow that sequence or pattern; in one cell, lets say put "month 1", in the cell below that, "month 2", and in the cell below month 2, put "month 3". highlight those three cells, THEN drag it to however long the total number of payments are; it should auto populate by then this is assuming Excel 2010 or newer is used; im not sure if it also applies to Excel 2007 or older. hope this helps
@projectpegasus1297 Жыл бұрын
array formula ( concatenate ( "Month", sequence ( 50, 1 , 1 ,1 ))) something like that on Google sheets
@zacharyguajardo2 жыл бұрын
Thanks for the easy to follow explanation. This was a great video!
@Mtnsunshine Жыл бұрын
This was wonderful! You explained things nice and clearly. I am new to Excel, so while all of this is easy to follow, I just need to learn how to put in the ‘ absolute’ values.
@SixMinutesSmarter Жыл бұрын
You're very welcome! I sometimes forget to put in those absolute references, too. As soon as a reuse/copy the formula is when I see that something is amiss.
@bijandosi5684 Жыл бұрын
How is the finance cost determined?
@luisdiaz8474 Жыл бұрын
I got a negative number on my final payment. Everything is the same way you did it. I’m not sure what went wrong. And my finance cost came up to be less than the posted finance cost.
@panko02 Жыл бұрын
This is flat rate or effective rate? Car loan is flat rate right? If i pay extra each month. It will be like your example?
@SixMinutesSmarter Жыл бұрын
Correct. Car loans are a fixed-rate loan--interest is the same for the life of the loan. Most loans are like that, so they're easy to calculate with Excel.
@panko02 Жыл бұрын
@@SixMinutesSmarter thanks.. so what would u suggest… to pay extra each month or save some to be paid off once?
@jesus-b5w8e Жыл бұрын
you cannot do that when paying a car loan by paying in advance.
@panko02 Жыл бұрын
@@jesus-b5w8e fyi.. updated situation… as mu calculation… i did pay extra each month and pay double in some months and it turned out good.. i could reduce the total amount of interest and paid off faster…
@freddyosman6963 Жыл бұрын
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