I often use the following formula to find outstanding balance on a loan:
=FV ((i,periods,pmt,-pv).
Does anyone know what the math is behind it?
I know that the FV factor is ((1 + i/12)^periods) - 1......but I haven't been able to figure out how to use this to create a long hand formula. Also, is finding the outstanding balance an iterative process. In other words, without excel or a fin. calculator would you have to figure out the outstanding balance for each prior period along the way.
=FV ((i,periods,pmt,-pv).
Does anyone know what the math is behind it?
I know that the FV factor is ((1 + i/12)^periods) - 1......but I haven't been able to figure out how to use this to create a long hand formula. Also, is finding the outstanding balance an iterative process. In other words, without excel or a fin. calculator would you have to figure out the outstanding balance for each prior period along the way.
