This one requires some explanation.
What I want to do is calculate how much total monthly payment I would have to pay for x number of months on a loan to get the total balance down to where the loan will be paid off by paying ONLY THE MINIMUM payment for the last y number of months. So x would be the number of months I want to pay a higher payment, and y would be the number of months I want to pay minimum.
What I know for loans I want to do this with:
- Current balance
- Amount of minimum monthly payment
- Whether or not the loan is compounded daily or monthly
- Number of months I want to pay higher amounts (variable, x)
- Number of months I want to pay minimums (variable, y, always a number of months left in the loan after x number of months)
So for example if I have 3000 left on a loan, and the monthly payments are 300, I want to know how much I would have to pay in monthly payments for x number of months up until it would take y number of months to pay off the loan completely if I stopped paying higher payments and only paid the minimum for those y remaining months.
On a 0 interest loan this would look like:
Total remaining is 3000, monthly payments are 300. I have 2 months I want to pay higher payments so that I can get the loan down to where I only have 5 months left of minimum payments.
Using simple math I can see clearly that for months 1 and 2 I would pay 750 each, like so:
- Month 1) 3000 - 750 = 2250
- Month 2) 2250 - 750 = 1500
- Month 3 (start paying minimum again)) 1500 - 300 = 1200
- Month 4) 1200 - 300 = 900
- Month 5) 900 - 300 = 600
- Month 6) 600 - 300 = 300
- Month 7) 300 - 300 = Paid
Let me know if I need to explain my goal more.
How would I calculate the higher monthly payment amounts for the first x months such that the minimum payment is sufficient to pay the loan off completely in the last y months?