Question

Assume a note is signed loan is taken out) on January 1, 2020 for $45.000 at a 5.25% interest rate with sixty monthly payments beginning February 1, 2020 Determine the monthly payment. NOTE: Format Excel so that cell values are in currency with no cents (no decimal places). Show your answers with dollar signs and commas but no cents. For example: $1,111 The following information will be used for Questions 7. 10. Use Excel to solve the problem. Assume a note is signed oan is taken out) on January 1, 2020 for $45,000 at a 5.25% interest rate with sixty monthly payments beginning February 1, 2020 Determine the amount of the principal payment on August 2022 NOTE: Format Excel so that cell values are in currency with no cents (no decimal places). Show your answers with dollar signs and corrmas but no cents. For example: $1,111 The following information will be used for Questions 7.10. Use Excel to solve the problem. Assume a note is signed loan is taken out) on January 1, 2020 for $45,000 at a 5.25% interest rate with sixty monthly payments beginning February 1, 2020, Determine the total amount of the principal paid for the year 2023 NOTE: Format Excel so that cell values are in currency with no cents (no decimal places). Show your answers with dollar signs and commas but no cents. For example: $1,111 The following information wil be used for Questions 7. 10. Uso Excel to solve the problem Assume a note is signed (loan is taken out) on January 1, 2020 for $45,000 at a 5.25% interest rate with sixty monthly payments beginning February 1, 2020, Determine the total amount of interest paid for the life of the loan

Answer 1

Answer to Q#1 (First question in the list): Monthly Interest rate, RATE # of monthly payments of note, NPER Note's face value, PV Balance in note at the end, FV Monthly installment type, TYPE Equal monthly payment required 0.4375% [5.25% / 12 --> Annual interest rate is converted into monthly interest rate] 60 $45,000 $0 [As all will be paid off over note's tenure] 0 = 0 if installments paid at the end of each month; 1 if installments paid at the beginning of each month $854 [Ref: NOTE] NOTE: L Equal monthly payment required is calculated using EXCEL FUNCTION PMT(rate,nper,pv,fv,type) where rate=0.4375%; nper=60; pv=-45000; fv=0; type=0; Here, pv is negative as it denotes cash inflow; type=0 as installments are paid at the end of each month only. А B C D E F G H I J K 1 Monthly Interest rate, RATE =5.25%/12 (5.25% / 12 --> Annual interest rate is converted into monthly interest rate) 2 # of monthly payments of note, NPER 60 3 Note's face value, PV $45,000 4 Balance in note at the end, FV $0 [As all will be paid off over note's tenure] 5 Monthly installment type, TYPE 0 = 0 if installments paid at the end of each month; 1 if installments paid at the beginning of each month 6 Equal monthly payment required =PMT(B1,B2,-B3,B4,B5) [Ref: NOTE]