D Module 9: Introduction to PMT Function 1 Calculate how much this house payment would be per month: 6 Loan Rate Years # of months per year $300,000 3.5% 30 12 7 8 9 10 Monthly payment: 21 12 2 Calculate how much this car payment would be per month: 13 15 Loan Rate Years # of months per year $25,000 4.85% 16 vi 5 12 19 20 Monthly payment: NNNRERE 3 Calculate the quarterly payment given this scenario: Quarterly payments made into an investment with a current value of $0, which is required to reach $15,000 over three years. The interest rate is 6.5% per year. Payment is to be made at the beginning of each quarter. Quarterly payment: 10 Budget Probleme IMI Marge & Center $ % 9 Conditional Forma Formatting as Tab 1 1 4 Calculate how much this house payment would be per quarter: Loan Rate Years Payment at end of quarter Quarterly payment: $150,000 2.500% 15 5 Calculate how much this car payment would be per month: Loan Rate Number of payments Payment at end of month Monthly payment: $65,000 2.7396 60 6 Calculate the monthly payment given this scenario: Monthly payments made into an investment with a current value of $0, which is required to reach $100,000 over 8 years. The interest rate is 4.2% per year. Payment is to be made at the beginning of each month, Monthly payment: 4 x fe B D E F G H =PMT(rate,nper,pv, Iv=o),type=0)) rate - ANNUAL interest rate of loan nper- total number of periods in the loan py - present value of the loan fy - future value (optional argument) type - specifies whether the payment is made at the beginning of each period or at the end of each period optional; default is o denoting the end, can use 1 to denote the beginning Example - you want to know the monthly payment for a $75,000 loan at 7.5% annual interest compounded monthly over 10 years. =PMT(0.075/12,10* 12,75000,0) RATE NPER PV TYPE rate - yeahy interest rate divided by 12 (number of months for the year) 0.075/12 10 nper- number of years (10) multiplied by 12 months per year) to determine total number of periods 10-12 32 py - current value of the loan (75000) PMT Syntas PMT Problems Budget b Ready