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Using Excel to compare FV of loan payment

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brianbogumil
Occasional Visitor

I would like to use excel to show how a future loan payment (fixed APR/fixed payment/fixed # of payments) decreases in value over time based on present value theory.  For example, if I'm interested in investing in a rental property and take a 30 year fixed mortgage, I would like to see what my mortgage payment is valued in the future but in today's currency.  I will use simple inflation rates as the discount.  In other words, if my monthly payment is $1,000 - what will $1,000 actually look like 10, 15 or 20 years from now (obviously the payment will be $1,000, but what is that actually worth in today's money).

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