Question

PLEASE DO IN EXCEL AND POST A PICTURE OF THE SHEET

Problem #2: You have taken a loan of $281,000. You can afford to pay monthly payments of $1964.37. This loan will be repaid in 23 years. What is the nominal annual rate of interest charged on this loan? Problem #2: Answer as a percentage, correct to 2 decimals

Answer 1

Ans 6.50%

P =	Regular Payments
PV =	Loan Amount
r =	rate of interest
n =	no of periods
P =	r (PV)
	1 - (1 + r )-n
1964.37 =	(r%/12)*281000
	1 - (1 / (1 + r%/12)^276))
1964.37 / 281000 =	(r%/12)
	1 - (1 / (1 + r%/12)^276))
0.00699064056939502 =	(r%/12)
	1 - (1 / (1 + r%/12)^276))
r =	6.50%