Forum Discussion
Solved
Excel formula help
kindly assist on formula below in cell E5 =IF(TODAY() > F5, D5 *(1.1)* (1 + 0.1)^MIN(DATEDIF(F5, TODAY(), "M"), 3), D5*1.1) how do I formulate it to first check if (outstanding amount) column...
- I'm not sure but I think what the OP is getting at is that the partial payments need to be taken into account such that the 10% is applied to the remaining balance at that time. So if the original loan is 1000 and 10% interest so principle & Interest is 1100 that has to be paid by due date but if only 500 was paid then 600 is outstanding balance and would get 10% penalty so new loan balance would be 660 the month after the due date and if they paid 260 then the next month would have another 10% penalty but only on the remaining 400 so the new balance would be 440.
Maybe Mbarak630 could confirm or correct this
If this is the case I think we could use LAMBDA function with REDUCE to do this
If I remember correctly the problem is that this formula doesn't track which loan a given payment is being applied to. Technically the 2 loans could overlap as long as the first is paid off before the DUE date of the next. An additional conditional on the penalty accrual function could be added to check if the NET total payment has exceeded all prior loan commitments (i.e. prior loans paid off) and not apply payments until that happens.
yes, payments made were and the allocation was given priority to the earlier loans.
I think best is to avoid multiple loans running for one customer, but stick one loan per customer and until it is fully paid inclussive of all penalties and there is no outstanding amount, then a new loan can be
another update with a cap on the penalties after 3 months