Question

Part 1: Loan Affordability Analysis Create a monthly payment table with changing interest rate and loan amount and allow userI'm confused on this assignment, I'm not certain on what formulas on excel I need to use for this?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

To solve the above in excel, PMT formula needs to be used. For example, Interest rate with 3% and Loan amount of $200,000, the monthly payment will be calculated as:
= PMT (rate of interest (monthly rate) (rate), number of periods (monthly) (nper), -loan amount (pv)
= PMT(0.03/12,30 *12,-200000)
=$843.21

The formula to use in excel is attached which can be applied by dragging the cells across rows and column.

For conditional formatting also, refer the formula to use as below:

B6 X =PMT($A6/12,$B$1*12,-B$5) A B с D E F G H 30 1600 Monthly payment table $500,000 1 Term 2 Affordable payment 3 4 5 Rate/

Add a comment
Know the answer?
Add Answer to:
I'm confused on this assignment, I'm not certain on what formulas on excel I need to...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Hello, I need some help with some Excel formulas. a. Open Excel_Ch11HW.xlsx and save it as...

    Hello, I need some help with some Excel formulas. a. Open Excel_Ch11HW.xlsx and save it as Excel_Ch11HW_LastNameFirstName. b. Click cell H4, the cell containing the ending date for the first loan. Enter the formula to compute the ending date, based on the starting date and the term of the loan. For the sake of simplicity, you don’t have to account for leap year. To compute the ending date, multiply the term of the loan by 365 and add that result...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT