Question

A 10-year loan in the amount of $238,000 is to be repaid in equal annual payments. The interest rate is 7 percent, compounded annually. What is the amount of interest that is included in the loan payment for Year 3? PLEASE HELP WITH EXCEL FUNCTION

Answer 1

C7 - fx fx =PMT(C2,C3,-C4,C5,C6) PMI D B F 0.07 A 1 2 RATE 3 NPER 4 PV 5 FV 6 TYPE 7 PMT 238000 Rate Per Period Total No.of Payments Present Value Future value Ending(0), Beginning(1) Payment per period (PMT(rate,nper, pv,fv, type)) $33,885.85 JPMT(0.07,10,-238000,0,0) 11 Year Beginning Loan Balance Interest $2,38,000.00 $16,660.00 $2,20,774.15 $15,454.19 $2,02,342.50 $14,163.97 Payment $33,885.85 $33,885.85 $33,885.85 Closing Balance $2,20,774.15 $2,02,342.50 $1,82,620.63 2 Interest for the Year 3 $14,163.97

C7 fx =PMT(C2,C3,-C4,C5,C6) B А 10.07 10 [238000 Rate Per Period Total No.of Payments Present Value Future value Ending(0), Beginning(1) Payment per period (PMT(rate,nper,-pv,fv,type)) =PMT(C2,C3,-C4,C5,C6) 1 2 RATE 3 NPER 4 PV 5 FV 6 TYPE 7 PMT 8 9 10 11 Year 12 1 13 2 14 3 PMT(0.07,10,-238000,0,0 Beginning Loan Balance =C4 =E12 =E13 Interest =B12*0.07 =B13*0.07 =B14*0.07 Payment =C7 =C7 Closing Balance =B12+C12-D12 =B13+C13-D13 =B14+C14-014 =C7 Interest for the Year 3 =C14