Question
What payment is required at the end of each month for 2 years to repay a...
What payment is required at the end of each month for 2 years to repay a loan of $4000.00 at 16.4% compounded monthly?
Homework Answers
Answer #1
Ans:- In this question, we need to find the monthly payment required to pay off the loan. we will use the PMT function of excel to find the answer.
Rate=16.4%/12 (since it is being compounded monthly ),Nper=12*2=24,PV=-$4,000,FV=0
Therefore, the monthly payment required to pay off the loan will be $196.62.
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