Question: Problem 5-51 Loan payment. Determine the equal, end-of-year payment required each year over the life of the loans shown in the following table to

Problem 5-51 Loan payment. Determine the equal, end-of-year payment required each year over the life of the loans shown in the following table to repay them fully during the stated term of the loan. Important: Do not use cell references to cells in rows 6 to 9. For all required answers, use cell references to values starting in row 14. Loan Principal Interest rate Term of loan (years) A $ 12.000 8% 3 B 60.000 12 10 C 75.000 10 30 4.000 15 5 Solution Loan A Number of years Annual interest rate 80% Present value 12.000. Annual deposit Loan B Number of years Annual interest rate Present value Annual deposit Loan C Number of years Annual interest rate Present value 12% 60.000 30 10% 75.000 Annual deposit Loan D Number of years Annual interest rate 15% Present value 4.000 Annual deposit equirements Points 1 In cell E17, by using cell references to the given data and the function PMT, calculate the annual payment for loan A. Note: the annual payment will be a negative value since it is a cash outflow. 1 2 In cell E23, by using cell references to the given data and the function PMT, calculate the annual payment for loan B. Note: the annual payment will be a negative value since it is a cash outflow. 1 3 In cell E29, by using cell references to the given data and the function PMT, calculate the annual payment for loan C. Note: the annual payment will be a negative value since it is a cash outflow. 1 4 In cell E35, by using cell references to the given data and the function PMT, calculate the annual payment for loan D. Note: the annual payment will be a negative value since it is a cash outflow. 1 5 Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed. 0

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