Question
The following table shows mortgage calculations on a spreadsheet. A person has set a maximum monthly payment that they can afford. The number of years
The following table shows mortgage calculations on a spreadsheet.
A person has set a maximum monthly payment that they can afford. The number of years over which they would have to repay the loan is displayed.
| A | B | C | D | |
| 1 | Loan Repayment | |||
| 2 | Monthly Repayment | 980 | ||
| 3 | Borrowed Principal | 120,000.00 | ||
| 4 | Loan Length | 13 | ||
| 5 | Period Rate | 0.00322 | Rate Period | =RATE(12*B4,-B2,B3) |
a. Explain the components of the formula in cell D5, for the spreadsheet provided.
b. What is the interest rate per period as a percent?
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Airline Management Finance
Authors: Victor Hughes
1st Edition
1138610690, 978-1138610699
