Find Interest Rate on a Loan by Newton's Method

Worksheet Created by Stan Brown; Latest Revision 2006 October 18

Copyright © 2005–2007 Oak Road Systems, http://oakroadsystems.com/math/loan.htm

Loan amount $2,800,000.00 Instructions:

Payment per period $200,000.00 Fill in the green cells at left.
Number of years 19
Payments per year 1 Note that you enter interest per year; the
worksheet automatically calculates interest
First guess per period if applicable.
interest per year 10.00% 19

Approximations to Interest Rate

Interest per
guess #
year
0 10.00000%
1 4.95777%
2 3.58844%
3 3.28139%
4 3.25979%
5 3.25968%
6 3.25968%
7 3.25968%
8 3.25968%
9 3.25968%
10 3.25968%
11 3.25968%
12 3.25968%
13 3.25968%
14 3.25968%
15 3.25968%
16 3.25968%
17 3.25968%
18 3.25968%
19 3.25968%
20 3.25968%
 Series Mathod
(after Cantrell)
u 0.02
i/period 3.2611%
i/year 3.2611%
 Find Remaining Balance on a Loan
Worksheet Created by Stan Brown; Latest Revision 2005 December 31
Copyright © 2005–2007 Oak Road Systems, http://oakroadsystems.com/math/loan.htm

Loan amount $18,000.00 Instructions:

Payment per period $617.39 Fill in the green cells at left.
Interest per year 14.25% Please enter interest per year; the
Payments per year 12 worksheet automatically calculates interest
Payments made so far 24 0 per period if applicable.

Result:
Remaining balance
or payoff amount $6,866.97

Caution:
While these results are mathematically correct, banks and other lenders may have special
provisions in their loan agreements that are not taken into acccount here. You should consider
these figures only as approximations when making financial decisions.
 Find Number of Payments for a Loan
Worksheet Created by Stan Brown; Latest Revision 2007 January 8
Copyright © 2005–2007 Oak Road Systems, http://oakroadsystems.com/math/loan.htm

Loan amount $2,800,000.00 Instructions:

Payment per period $200,000.00 Fill in the green cells at left.
Interest per year 3.26% Please enter interest per year; the
Payments per year 1 worksheet automatically calculates interest
0 per period if applicable.

Results:
Total payments 19 Years: 19
Months: 0

Caution:
While these results are mathematically correct, banks and other lenders may have special
provisions in their loan agreements that are not taken into acccount here. You should consider
these figures only as approximations when making financial decisions.
 Find Payment Amount on a Loan
Worksheet Created by Stan Brown; Latest Revision 2005 December 31
Copyright © 2005–2007 Oak Road Systems, http://oakroadsystems.com/math/loan.htm

Loan amount $2,800,000.00 0 Instructions:

Fill in the green cells at left.
Interest per year 3.26% Please enter interest per year; the
Payments per year 1 worksheet automatically calculates interest
Total payments 19 per period if applicable.

Result:
Payment amount $200,000.02

Caution:
While these results are mathematically correct, banks and other lenders may have special
provisions in their loan agreements that are not taken into acccount here. You should consider
these figures only as approximations when making financial decisions.