>>>>Is there a way to solve for a loan payment with VFP 5 when a residual is involved?
>>>>
>>>>Example PV or Principal = $100,000
>>>> Term = 36 Months
>>>> Interest Rate Compounded Monthly = 10%
>>>> FV or Residual = $5,000
>>>> Monthly Payment Due on the 1st = ?
>>>
>>>
>>>I think what you need is:
>>>
>>> i=.10/12 n=36 monthly payment due on the 1st
>>>
>>> payment= (((PV/(1+i))-(FV/(1+i)^36)))/payment(1,i,36)
>>>
>>> In your case, Payment=2,643.14
>>
>>
>>
>>Without analyzing your answer,
>>
>>$2643.14 * 36 = $95153.04
>>
>>This doesn't seem right.
>
>
>Joseph: you are right. There is a mistake in the interest rate. Aditionally, the fomula should say
>
>
> loan payment= (((PV/(1+i))-(FV/(1+i)^36)))*payment(1,i,36)
>
> = 3,065.63


The present value of the $5000 is 5000/(1+i)^36, which is $3708.70.

That leaves a payment based on 100000-3708.70 = $96291.30

payment(96291.30, .1/12, 36) = 3107.05

As a check, do this

payment(3708.70, .1/12, 36) = 119.67
payment(100000.00, .1/12, 36) = 3226.72

and things add-up. So the only question is, is my PV right?

Well, if you like using the VFP PV function instead of my version for a residual,

PV(5000,(1+.1/12)^36-1 ,1) = 3708.70

Further,

(1+.1/12)^36 * 3708.70 = 5000.00

So, I think this is the right answeris : $3107.05

Take care,

Joe