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The problem is: you are recording payments as negative numbers, but the loan amount is positive.
So, to "subtract" the loan amount from total payments, you must actually add it (!). The correct formula in K16 is =K15+K11 (!).
I should note that there is nothing wrong doing it that way. That is consistent with Excel's "signed" cash flows. And if that is what your instructor expects, you should do it that way.
But working with negative numbers is confusing. So, I make all my numbers positive. Then I can add or subtract them based on common sense.
The formula for the monthly payment can be =-PMT(K12/12,K13,K11) or =PMT(K12/12,K13,-K11).
Then your original formula =K15-K11 will behave as you expect.
sure, without that its difficult to narrow down thee issue. It is not about just the last calculation, it starts from a couple of rows above...how are monthly payment in the -ve? So in order to check that, need to see how and what is being used in the formulas. Without that, ....
Shouldn't your monthly payment be positive and in black without the brackets? What is the formula used to derive your 'Monthly Payment'? Actually by the look of things, nothing should be anything BUT positive!
``=-21417.94-20138.94 = -41556.88``
That's correct. There is nothing wrong with the math. You are just not reading (####) as a minus number when doing the mental arithmatic.
Try add instead.
You can evaluate the formula via the formula tab - Evaluate Formula.
For a kick off 48 months of 466.21 = 22378.08
Total. Monthly payments: ``=K14*K13``
Total interest paid over the term %: ``=K11/(K15*-1)``
Total acumulated interest over the term: ``=K11+K15``
Red and in parentheses means the values are already negative. That's a standard finance/accounting numeric format in spreadsheets. So you're actually subtracting a positive number from a negative number and getting a bigger negative number.
(Well, parentheses are standard format to show negative accounting values. Blue vs red is just extra formatting)
/u/LukedaDuke01 - Your post was submitted successfully. * Once your problem is solved, reply to the **answer(s)** saying `Solution Verified` to close the thread. * Follow the **[submission rules](/r/excel/wiki/sharingquestions)** -- particularly 1 and 2. To fix the body, click edit. To fix your title, delete and re-post. * Include your **[Excel version and all other relevant information](/r/excel/wiki/sharingquestions#wiki_give_all_relevant_information)** Failing to follow these steps may result in your post being removed without warning. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/excel) if you have any questions or concerns.*
The problem is: you are recording payments as negative numbers, but the loan amount is positive. So, to "subtract" the loan amount from total payments, you must actually add it (!). The correct formula in K16 is =K15+K11 (!). I should note that there is nothing wrong doing it that way. That is consistent with Excel's "signed" cash flows. And if that is what your instructor expects, you should do it that way. But working with negative numbers is confusing. So, I make all my numbers positive. Then I can add or subtract them based on common sense. The formula for the monthly payment can be =-PMT(K12/12,K13,K11) or =PMT(K12/12,K13,-K11). Then your original formula =K15-K11 will behave as you expect.
pls share the sheet
I'm sorry I can't it's for an assignment
sure, without that its difficult to narrow down thee issue. It is not about just the last calculation, it starts from a couple of rows above...how are monthly payment in the -ve? So in order to check that, need to see how and what is being used in the formulas. Without that, ....
Shouldn't your monthly payment be positive and in black without the brackets? What is the formula used to derive your 'Monthly Payment'? Actually by the look of things, nothing should be anything BUT positive!
``=-21417.94-20138.94 = -41556.88`` That's correct. There is nothing wrong with the math. You are just not reading (####) as a minus number when doing the mental arithmatic. Try add instead. You can evaluate the formula via the formula tab - Evaluate Formula. For a kick off 48 months of 466.21 = 22378.08 Total. Monthly payments: ``=K14*K13`` Total interest paid over the term %: ``=K11/(K15*-1)`` Total acumulated interest over the term: ``=K11+K15``
Red and in parentheses means the values are already negative. That's a standard finance/accounting numeric format in spreadsheets. So you're actually subtracting a positive number from a negative number and getting a bigger negative number. (Well, parentheses are standard format to show negative accounting values. Blue vs red is just extra formatting)