Self Amortizing Loan with Varying Interest and Cash Flow

[aisko18]

Hi,

First time poster.

I'm trying to back into the principal amount of a self amortizing loan with varying interest and cash flow. The interest rate will be 5% for the first year and 2% for years 2 - 6. There is no payment in year 1 and let's use $100 for payments in years 2 - 6. Any interest reserve can be part of the original Principal. I don't want to have a balloon payment at the end of year 6.

 

[Dave Patton]

Welcome to the forum.

Build your amortization schedule and then use Goal Seek.

 

[Dave Patton]

You could also try a formula like the following and use Goal Seek to determine the amount.
I would check the formula with an amortization schedule.

=FV(0.02/12,60,100,FV(0.05/12,12,0,Principal))

 

[aisko18]

When you put it that way, it sounds obvious thank you for the help!