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Finance App TVM with irregular cash flows
05-26-2021, 11:20 AM
Post: #5
RE: Finance App TVM with irregular cash flows
Hi, Stefan Falk

Welcome to the forum.

We could do it all in finance app, by pulling all extra payments into NPV

All we need is terms and rate, and the list of extra payments.
Example, loan is 5% APY, compounded monthly, terms is 30 years (N=360)

At N=2, extra payment of $1000
At N=20, extra payment of $2000

Finance app: I%YR=5, P/Yr=12, C/Yr=12, End=√, PMT=0

// shift N=20 payments to N=2
N=18, FV=2000 → PV=−1855.7761122

// shift N=2 payments to N=0, i.e. NPV
N=2, FV=1000-(−1855.7761122) → PV=−2832.12589423

// Spread NPV effect to regular payments
N=360, FV=0 → PMT=15.2034641912
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RE: Finance App TVM with irregular cash flows - Albert Chan - 05-26-2021 11:20 AM



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