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Formula extraction for loan

klaudiano

Community Trekker

Joined:

Apr 21, 2016

Hello,

 

I want to extract from a loan schedule the formula that represents the sum of cash interest interests over the loan period and the formula that corresponds to principal repayment knowing that there is also compounded interest. I want to define a variable to change while others are predefined (example interest rate is defined but the variable is the monthly repayment of the loan which I can define as x1, x2, etc.)

 

My question is:

 

1- how to input a loan schedule in JMP Pro

2- how to instruct JMP Pro to display the formula for the sum mentioned above

 

Many thanks for your help

4 REPLIES
ian_jmp

Staff

Joined:

Jun 23, 2011

To get started, I would review JMP's financial functions (shown below in the Formula Editor):

Screen Shot 2017-10-05 at 09.42.57.png

klaudiano

Community Trekker

Joined:

Apr 21, 2016

Thanks, but how can I build a loan schedule and how I can extract the formula that I mentioned? Please clarify as I need to figure it out urgently today. Thanks

ian_jmp

Staff

Joined:

Jun 23, 2011

Unfortunately, I don't know enough about what you are trying to do to help. I suspect that might be true for others too (but you might be lucky). Do you have an example in, for instance, Excel? 

michael_jmp

Staff

Joined:

Jun 23, 2011

Hello,

The script below creates a table that has Principal and Interest payment information for a 30 year loan with monthly payments. You can adjust the initial Principal and Interest Rate in the table variables. I also included columns for cumulative principal and interest payments as well as the remaining balance. I'm not sure if this is what you were looking for, but I hope it helps you get there.

Michael

 

New Table( "Loan Payments",
	Add Rows( 360 ),
	New Table Variable( "Principal", 100000 ),
	New Table Variable( "Interest Rate", 0.04 ),
	New Column( "Month", Numeric, "Continuous", Format( "Best", 12 ), Set Values( 1 :: 360 ) ),
	New Column( "Principal Payment",
		Numeric,
		"Continuous",
		Format( "Currency", "USD", 17, 2 ),
		Formula( Principal Payment( :Interest Rate / 12, :Month, 360, -:Principal ) )
	),
	New Column( "Interest Payment",
		Numeric,
		"Continuous",
		Format( "Currency", "USD", 17, 2 ),
		Formula( Interest Payment( :Interest Rate / 12, :Month, 360, -:Principal ) )
	),
	New Column( "Total Payment",
		Numeric,
		"Continuous",
		Format( "Currency", "USD", 17, 2 ),
		Formula( Payment( :Interest Rate / 12, 360, -:Principal ) )
	),
	New Column( "Cumulative Principal",
		Numeric,
		"Continuous",
		Format( "Currency", "USD", 17, 2 ),
		Formula( Col Cumulative Sum( :Principal Payment ) )
	),
	New Column( "Cumulative Interest",
		Numeric,
		"Continuous",
		Format( "Currency", "USD", 17, 2 ),
		Formula( Col Cumulative Sum( :Interest Payment ) )
	),
	New Column( "Remaining Balance",
		Numeric,
		"Continuous",
		Format( "Currency", "USD", 17, 2 ),
		Formula( :Principal - :Cumulative Principal )
	)
)
Michael Crotty
Sr Statistical Writer
JMP Development