Question

Using cell references enter a formula in B6 to calculate monthly payments for the loan described in this worksheet Omit the optional arguement use a negative value for pv

Answer 1

Answer:

= PMT(B4/B2, B2 * B3, B1)

Explanation:

The syntax to use is:

= PMT(Rate,NPER, PV)

To answer this question, the following assumptions will be made.

B1 = Present Value i.e. PV

B2 = Number of Payment Period i.e n

B3 = Duration (in years)

B4 = Rate

So, the formula to enter in B6 is:

= PMT(B4/B2, B2 * B3, B1)

The above formula will return the monthly payment in cell B6