Setting up a loan

I want to set up a car loan using Money 2005 Deluxe. When I set up a new
account/loan it takes me to a wizard to answer questions. It asks for the
loan amount, interest rate, pricipal + interest amount, number of payments,
and a balloon amount. Here is the information I about the loan:

Amount Borrowed: $10,556.13

Total Paid At End of Loan: $11,450.74

Interest Rate: 4.05%

47 Monthly Payments: $239.00 ($206.20 towards principal, $32.80 towards
interest)

1 Balloon Payment: $217.74

The wizard only allows me to enter 4/5 pieces of information about the loan
and it calculates the 5th things for me. However, I have tried every
possible combination to enter the information and it always comes up with an
incorrect value. How should I enter the information above into the loan
wizard? (Also, should I use the $10,556.13 or the $11,450.74 for the loan
amount?)

Once I set up the loan, how do I apply a payment that was made from my
checking account to the car loan with the proper pricipal and interest split
amounts?

via_newsgroup
Tue Apr 19 09:22:47 CDT 2005

In microsoft.public.money, jaroady wrote:

>of information about the loan
>and it calculates the 5th things for me. However, I have tried every
>possible combination to enter the information and it always comes up with an
>incorrect value. How should I enter the information above into the loan
>wizard? (Also, should I use the $10,556.13 or the $11,450.74 for the loan
>amount?)

The $11,450.74 sounds like a balloon. If you receive $10,556.13 from
the loan, that sounds like the loan amount.

It is usually best to leave the interest rate blank. The other items
are known, but the interest rate sometimes gets computed
differently.

>
>Once I set up the loan, how do I apply a payment that was made from my
>checking account to the car loan with the proper pricipal and interest split
>amounts?

At the bottom of the categories, under the SPECIAL heading, choose
LoanPayment with the subcategory being the loan.

via_newsgroup
Tue Apr 19 09:25:16 CDT 2005

In microsoft.public.money, Cal Learner-- MVP wrote:

>In microsoft.public.money, jaroady wrote:
>
>>of information about the loan
>>and it calculates the 5th things for me. However, I have tried every
>>possible combination to enter the information and it always comes up with an
>>incorrect value. How should I enter the information above into the loan
>>wizard? (Also, should I use the $10,556.13 or the $11,450.74 for the loan
>>amount?)
>
>The $11,450.74 sounds like a balloon. If you receive $10,556.13 from
>the loan, that sounds like the loan amount.

Oh, wait. I suspect you meant that $11,450.74 would have been paid
by the end of the loan... not at the end of the loan. In that case,
do not enter that number in setting up the loan.

>
>It is usually best to leave the interest rate blank. The other items
>are known, but the interest rate sometimes gets computed
>differently.
>
>>
>>Once I set up the loan, how do I apply a payment that was made from my
>>checking account to the car loan with the proper pricipal and interest split
>>amounts?
>
>At the bottom of the categories, under the SPECIAL heading, choose
>LoanPayment with the subcategory being the loan.

Dick
Tue Apr 19 09:29:27 CDT 2005

Enter principal, payment, and balloon payment. Let Money calculate the
interest rate. If it disagrees, there is no matter.

At then end of the wizard it will offer to schedule a Loan Payment
transaction; let it to so or schedule one on your won. A Loan Payment is a
"special category" that is a split transaction that knows how to a)
calculate an interest split line that it will expense to the category you
set the loan up to use for interest expense, and b) subtract the interest
component from the payment to create a Principal Transfer split line that
transfers the principal portion to the Loan Account to reduce its liability
balance. To enter a Loan Payment by hand, use category:subcategory Loan
Payment:[name of Money loan account].

"jaroady" <jaroady@discussions.microsoft.com> wrote in message
news:CD270BDC-2BD2-4CBC-BA99-8D94D2F0FBF8@microsoft.com...
> I want to set up a car loan using Money 2005 Deluxe. When I set up a new
> account/loan it takes me to a wizard to answer questions. It asks for the
> loan amount, interest rate, pricipal + interest amount, number of
payments,
> and a balloon amount. Here is the information I about the loan:
>
> Amount Borrowed: $10,556.13
>
> Total Paid At End of Loan: $11,450.74
>
> Interest Rate: 4.05%
>
> 47 Monthly Payments: $239.00 ($206.20 towards principal, $32.80 towards
> interest)
>
> 1 Balloon Payment: $217.74
>
> The wizard only allows me to enter 4/5 pieces of information about the
loan
> and it calculates the 5th things for me. However, I have tried every
> possible combination to enter the information and it always comes up with
an
> incorrect value. How should I enter the information above into the loan
> wizard? (Also, should I use the $10,556.13 or the $11,450.74 for the loan
> amount?)
>
> Once I set up the loan, how do I apply a payment that was made from my
> checking account to the car loan with the proper pricipal and interest
split
> amounts?

Dick
Tue Apr 19 09:34:19 CDT 2005

BTW, several of your values are irrelevant to setting this up in Money or
misleading. Total paid is irrelevant. The first month split of the PMT to P
and I is irrelevant and misleading since it changes every month.

"jaroady" <jaroady@discussions.microsoft.com> wrote in message
news:CD270BDC-2BD2-4CBC-BA99-8D94D2F0FBF8@microsoft.com...
> I want to set up a car loan using Money 2005 Deluxe. When I set up a new
> account/loan it takes me to a wizard to answer questions. It asks for the
> loan amount, interest rate, pricipal + interest amount, number of
payments,
> and a balloon amount. Here is the information I about the loan:
>
> Amount Borrowed: $10,556.13
>
> Total Paid At End of Loan: $11,450.74
>
> Interest Rate: 4.05%
>
> 47 Monthly Payments: $239.00 ($206.20 towards principal, $32.80 towards
> interest)
>
> 1 Balloon Payment: $217.74
>
> The wizard only allows me to enter 4/5 pieces of information about the
loan
> and it calculates the 5th things for me. However, I have tried every
> possible combination to enter the information and it always comes up with
an
> incorrect value. How should I enter the information above into the loan
> wizard? (Also, should I use the $10,556.13 or the $11,450.74 for the loan
> amount?)
>
> Once I set up the loan, how do I apply a payment that was made from my
> checking account to the car loan with the proper pricipal and interest
split
> amounts?