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solve in excel Mr.X have just taken a house loan of Rs. 2 million. The loan is for 48 months at an annual interest rate
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Mr.X have just taken a house loan of Rs. 2 million. The loan is for 48 months at an annual interest rate of 15 percent but remember that the bank translates it to a monthly rate. The 48 payments (to be made at the end of each of the next 48 months) are all equal. You are required to: a. Calculate the monthly payment on the loan. b. In a loan table calculate, for each month, the principal remaining on the loan at the beginning of the month and the split of that month's payment between interest and repayment of principal c. Show that the principal at the beginning of each month is the present value of the remaining loan payments at the loan interest rate using the PV function. d. Discuss the results and steps in your words in detailStep by Step Solution
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