Assume you decided to go with the Loan from Maryland Bank but you cannot afford to pay more than $300,000 per period (semi-annually). You are willing to negotiate the interest rate with the bank, though. Using a What If-Analysis application.

How much should you ask the bank to charge in interest in order to make sure that your periodic payment will be $300,000? Assume payments are still made semi-annually for the next 15 years. 

Make sure to explain how you arrive at your answer in cell D4 and if it makes sense relative to your original answer which function(s)/analysis models did you use? What inputs did you use?

Answer rating: 100% (QA)

To determine the interest rate that would result in a periodic payment of 300000 we can use the pres... View the full answer