We're considering a loan for a car - a "Personal Contract" where you essentially pay off the depreciation for four years and then have a choice about whether to buy what's left or hand it back. I can't get any of the Financial functions to give "sensible" answers!
I understand it's essentially two loans: one where you make 47 fixed monthly payments (in this case 229.00) with an interest rate (annual, calculated monthly) of 4.84% until you've paid off 8,786.00, leaving 5,927.00 to pay if you want to keep the car rather than hand it back. And you pay the same interest rate throughout (without making any payments) on that 5,927.
What function will do this for me? I've looked at CUMIPMT, FV and PV, but I can't make any of them produce a sensible figure!
Duration (Months) 48
47 monthly payments of £229.00
Manuf. deposit contribution £2,250.00
Customer deposit £2,091.11
Total deposit £4,341.11
Optional extras £595.00
Retail cash price (inc. paint) £19,055.00
Amount of credit £14,713.89
Optional final payment £5,927.40
Total amount payable £21,041.51
Option to purchase fee £10.00
Rate of interest 4.84%
Representative APR 4.90%
If you take the Retail Cash Price from the Total Amount payable you get a figure for Interest of 1,986.51 - but of course that depends on the quoted figure (opaque) of Total Amount Payable.
Going in circles, here....
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