>>>>>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

Joseph: What does "Monthly Payment Due on the 1st = ?" I am assuming it means that the payment should be made on the first day of each period. Can you confirm this ?
Thanks