A B D E F G H 1 1 2 3 4 Step 1 Find Periodic Interest FVdue $ 250,000.00 PMT = $ 300.00 n = 300 Step 3 Nominal Interest 1 = Step 2 Verification PMT $ 300.00 n = 300 1 0 FVdue = 0 5 6 f= 7 8 00 9 Steps 10 1. 11 Use the Rate function in C7 to find the periodic interest rate involved reaching $250,000 with 300 $300 payments. Be sure to account for payments at the start of the payment periods (annuity due). 11 12 13 11 14 2 15 Use the FV function in F7 to verify your answer from Step 1. The value you get C7 should automatically copy to F6 to use as the periodic interest rate for the formula in F7. Now that you have the correct periodic interest rate, calculate the nominal interest rate considering these are monthly payments. You can create your own formula in 15 or you can calculate it yourself. Calculate the effective interest rate in 16. 16 12 17 3. 18 19 20 21 22 23 24 2 Question 3