21. You borrowed 75 percent of a new car priced at $20,000 with an interest rate of 7 percent interest for 6 years. What is the amount of your monthly payment? What should be the formula on cell B4 to find the amount of your monthly payment? A 1 Price 2 Interest Rate 3 Years B $20,000 7% 6 4 Monthly Payment =PV 5 D PV(rate, nper, pmt, [fv], [type]) a. =PMT(B2*12,B3/12,-0.75*B1,0) b. =PMT(B2,B3,-B1,0) c. =PMT(B2/12,B3*12,-0.75*B1,0) d. =PMT(B2/12,B3*12,-B1,0) e. =PMT(B2/12, B3/12,-0.75*B1,0)
21. You borrowed 75 percent of a new car priced at $20,000 with an interest rate of 7 percent interest for 6 years. What is the amount of your monthly payment? What should be the formula on cell B4 to find the amount of your monthly payment? A 1 Price 2 Interest Rate 3 Years B $20,000 7% 6 4 Monthly Payment =PV 5 D PV(rate, nper, pmt, [fv], [type]) a. =PMT(B2*12,B3/12,-0.75*B1,0) b. =PMT(B2,B3,-B1,0) c. =PMT(B2/12,B3*12,-0.75*B1,0) d. =PMT(B2/12,B3*12,-B1,0) e. =PMT(B2/12, B3/12,-0.75*B1,0)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
![21. You borrowed 75 percent of a new car priced at $20,000 with an interest rate of 7 percent
interest for 6 years. What is the amount of your monthly payment? What should be the formula
on cell B4 to find the amount of your monthly payment?
A
1 Price
2 Interest Rate
3 Years
B
$20,000
7%
6
4 Monthly Payment =PV
5
D
PV(rate, nper, pmt, [fv], [type])
a. =PMT(B2*12,B3/12,-0.75*B1,0)
b. =PMT(B2,B3,-B1,0)
c. =PMT(B2/12,B3*12,-0.75*B1,0)
d. =PMT(B2/12,B3*12,-B1,0)
e. =PMT(B2/12, B3/12,-0.75*B1,0)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5977d0bb-e3b5-46fc-a0ce-a60388a1523a%2F1de96f17-996f-4e85-a062-c8d520b44990%2Fxycwjq6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:21. You borrowed 75 percent of a new car priced at $20,000 with an interest rate of 7 percent
interest for 6 years. What is the amount of your monthly payment? What should be the formula
on cell B4 to find the amount of your monthly payment?
A
1 Price
2 Interest Rate
3 Years
B
$20,000
7%
6
4 Monthly Payment =PV
5
D
PV(rate, nper, pmt, [fv], [type])
a. =PMT(B2*12,B3/12,-0.75*B1,0)
b. =PMT(B2,B3,-B1,0)
c. =PMT(B2/12,B3*12,-0.75*B1,0)
d. =PMT(B2/12,B3*12,-B1,0)
e. =PMT(B2/12, B3/12,-0.75*B1,0)
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