Justin and Kaleen Millowski have always dreamed of purchasing and running a campground. Kaleen wants to be ready when a campground becomes available, so she decides to start calculating how a mortgage will impact her family’s budget on a monthly basis and over the life of the loan. She also wants to consider how different mortgage interest rates will impact the total cost of the campground. Switch to the Campground Mortgage worksheet. In cell D5, create a formula using the PMT function to determine the monthly payments for the anticipated Campground mortgage, using the defined names Rate, Term Years, and Loan Amount as the rate, nper, and pv arguments in the formula.

Put a negative sign before the PMT function to make the formula return a positive value. 

In the function, Rate should be divided by 12 to calculate the monthly interest rate, and Term Years should be multiplied by 12 to calculate the total number of monthly payments. What does this formula look like in the bar that i type it into?  

 

camp millowski mortgage loan payment calculator date 15-Aug-18 rate 5.75% campground term (years) $ 486,000.00 monthly payment 97,200.00 total interest $ 388,800.00 total cost item 15 price 3,228.63 down payment $ 192,354.20 $ 678,354.20 loan amount