Question
In Row 7, for a $425,000 business loan that is repaid in 10 years at 4.85% interest rate with quarterly payments, use the PMT function
In Row 7, for a $425,000 business loan that is repaid in 10 years at 4.85% interest rate with quarterly payments, use the PMT function in cell I7 to calcualte the quarterly payments.
In Row 8, For a $425,000 loan at 4.85% interest rate with quarterly paymets of $10,000 made over 10 years, use the FV function in cell C8 to calculate the principal at the end of the 10 years.
In Row 9, for a $425,000 loan at a 4085% interest rate that is completely repaid with quarterly paymets of $10,000 use the NPER function in cell F9 to calculate the number of quarterly payment periods and the in cell D9, calcualte the number of years required to repay the loan.
In row 10, for quarterly payments of $12,000 for 10 years at a 4.85% interest rate, use the PV function in cell B10 to calculate the largest loan the company could completely repay in 10 years.
**Show all formulas**
| QR Shopper Business Plan | ||||||||
| Loan Scenarios | ||||||||
| Annual Interest Rate | 4.85% | |||||||
| Financial Value | Business Loan (PV) | Future Value (FV) | Years | Payments per Year | Payments (NPER) | Annual Rate | Rate per Quarter (RATE) | Quarterly Payments (PMT) |
| Quarterly Payment (PMT) | $ 425,000 | - | ||||||
| Future Value (FV) | $ 425,000 | 12 | ||||||
| Payments (NPER) | $ 425,000 | 12 | ||||||
| Business Loan (PV) | ||||||||
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Public Finance
Authors: Harvey S Rosen
7th Edition
0072876484, 978-0072876482
