You are interested in acquiring the property you selected for your group project at a negotiated...

 

Transcribed Image Text:

You are interested in acquiring the property you selected for your group project at a negotiated purchase price of $1,000,000. You have negotiated an acquisition loan for 80% of the purchase price from your bank for a 6.5% stated annual interest rate based on a 30 year amortization term and loan term (maturity date) of 30 years. A From your perspective as the borrower, what is your monthly payment? Fill in the missing Excel inputs below to compute your monthly payment. Function Arguments PMT Rate Nper Pv Fv Type 0 0 = = number number MP number 0 0 Calculates the payment for a loan based on constant payments and a constant interest rate. ? X Type is a logical value: payment at the beginning of the period = 1; payment at the end of the period = 0 or omitted. You are interested in acquiring the property you selected for your group project at a negotiated purchase price of $1,000,000. You have negotiated an acquisition loan for 80% of the purchase price from your bank for a 6.5% stated annual interest rate based on a 30 year amortization term and loan term (maturity date) of 30 years. A From your perspective as the borrower, what is your monthly payment? Fill in the missing Excel inputs below to compute your monthly payment. Function Arguments PMT Rate Nper Pv Fv Type 0 0 = = number number MP number 0 0 Calculates the payment for a loan based on constant payments and a constant interest rate. ? X Type is a logical value: payment at the beginning of the period = 1; payment at the end of the period = 0 or omitted.

Answer rating: 100% (QA)

To calculate the monthly payment for the acquisition loan you can use the PMT function in Excel Here... View the full answer