Liam has three other options for purchasing the Charles Street property. In the first scenario, he could borrow additional money to fund a renovation of the building. He wants to determine the monthly payment for the first scenario. a)In cell G10, insert a formula using the PMT function using the monthly interest rate (cell G6), the loan period in months (cell G8), and the loan amount (cell G4) to calculate the monthly payment for the renovation scenario.
Liam has three other options for purchasing the Charles Street property. In the first scenario, he could borrow additional money to fund a renovation of the building. He wants to determine the monthly payment for the first scenario. a)In cell G10, insert a formula using the PMT function using the monthly interest rate (cell G6), the loan period in months (cell G8), and the loan amount (cell G4) to calculate the monthly payment for the renovation scenario.
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
1)Liam has three other options for purchasing the Charles Street property. In the first scenario, he could borrow additional money to fund a renovation of the building. He wants to determine the monthly payment for the first scenario.
a)In cell G10, insert a formula using the PMT function using the monthly interest rate (cell G6), the loan period in months (cell G8), and the loan amount (cell G4) to calculate the monthly payment for the renovation scenario.
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G10
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1941
А
C
D
E
F
G
H
J
K
M
N
1 New Office Building
2 Loan Calculator
3
Loan Payment Calculator
Scenarios
Renovation
20 Years
8 Years
$ 1,020,000
4 Date
5 Property
6 Price
7 Down Payment
8 Loan Amount
9/15/21 Rate
4.45%
Loan Amount
(920,000)
Charles Street
Term in Months
180
Annual Interest Rate
4.45%
4.25%
4.45%
$
$
1,150,000 Monthly Payment
230,000 Total Interest
(920,000) Total Cost
$7,014.45
$ 2,182,601.29
$ 3,332,601.29
Month ly Interest Rate
Loan Period in Years
0.37%
0.35%
0.37%
15
20
8
it
Loan Period in Months
180
240
96
2 PM
9
Start Date
1/3/22
1/3/22
1/3/22
Varying Interest Rates and Terms
Number of Months
10
Monthly Payment
(6,000) $
(8,000)
11
Rate
Future Value
n/a
n/a
12 $
7,014
$
120
180
240
6,782.10 $
6,828.20 $
6,874.49 $
6,920.96 $
6,967.62 $
7,014.45 $
7,061.47 $
7,108.67 $
7,156.05 $
7,203.62 $
7,251.36 $
7,299.29 $
7,347.39 $
9,292.71
2$
3.95%
$
5,550.81
5,599.29
5,648.00
5,696.96
5,746.15
5,795.57
5,845.23
5,895.13
5,945.26
5,995.62
6,046.21
6,097.03
6,148.09
13
14
4.05%
9,336.43
9,380.28
9,424.25 $
$
2$
$
15
4.15%
t
16
4.25%
1 PM
9,468.35
9,512.58 $
2$
17
4.35%
18
4.45%
$
19
4.55%
9,556.92
9,601.40 $
$
20
4.65%
$
9,645.99
$
21
4.75%
$
9,690.71
2$
22
4.85%
9,735.56
9,780.53 $
$
23
4.95%
t
24
5.05%
$
5 PM
25
5.15%
9,825.62
26
27
28
29
30
ot
M CD
31
32
33
Documentation
Loan Calculator
Properties
Equipment Loan
+
Ready
+
100%
Special_Programs_
Transfer...est copy
1150 words
English (United States)
E ] Focus
+
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2022-02...3 PM CB 2022-02...2.39 PM 2022-02...7.00 PM
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2010
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Insert v
11
V
Format as Table v
Delete v
B I U
$ v %
00
00 →0
Editing
Analyze
Data
Paste
Sensitivity
na
A Cell Styles v
Format v
G10
fx
1941
А
C
D
E
F
G
H
J
K
M
N
1 New Office Building
2 Loan Calculator
3
Loan Payment Calculator
Scenarios
Renovation
20 Years
8 Years
$ 1,020,000
4 Date
5 Property
6 Price
7 Down Payment
8 Loan Amount
9/15/21 Rate
4.45%
Loan Amount
(920,000)
Charles Street
Term in Months
180
Annual Interest Rate
4.45%
4.25%
4.45%
$
$
1,150,000 Monthly Payment
230,000 Total Interest
(920,000) Total Cost
$7,014.45
$ 2,182,601.29
$ 3,332,601.29
Month ly Interest Rate
Loan Period in Years
0.37%
0.35%
0.37%
15
20
8
it
Loan Period in Months
180
240
96
2 PM
9
Start Date
1/3/22
1/3/22
1/3/22
Varying Interest Rates and Terms
Number of Months
10
Monthly Payment
(6,000) $
(8,000)
11
Rate
Future Value
n/a
n/a
12 $
7,014
$
120
180
240
6,782.10 $
6,828.20 $
6,874.49 $
6,920.96 $
6,967.62 $
7,014.45 $
7,061.47 $
7,108.67 $
7,156.05 $
7,203.62 $
7,251.36 $
7,299.29 $
7,347.39 $
9,292.71
2$
3.95%
$
5,550.81
5,599.29
5,648.00
5,696.96
5,746.15
5,795.57
5,845.23
5,895.13
5,945.26
5,995.62
6,046.21
6,097.03
6,148.09
13
14
4.05%
9,336.43
9,380.28
9,424.25 $
$
2$
$
15
4.15%
t
16
4.25%
1 PM
9,468.35
9,512.58 $
2$
17
4.35%
18
4.45%
$
19
4.55%
9,556.92
9,601.40 $
$
20
4.65%
$
9,645.99
$
21
4.75%
$
9,690.71
2$
22
4.85%
9,735.56
9,780.53 $
$
23
4.95%
t
24
5.05%
$
5 PM
25
5.15%
9,825.62
26
27
28
29
30
ot
M CD
31
32
33
Documentation
Loan Calculator
Properties
Equipment Loan
+
Ready
+
100%
Special_Programs_
Transfer...est copy
1150 words
English (United States)
E ] Focus
+
180%
2022-02...3 PM CB 2022-02...2.39 PM 2022-02...7.00 PM
关
曲
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
Given,
Loan Amount = $1,020,000
Annual Interest Rate = 4.45%
Monthly Interest Rate = 0.37%
Loan Period in Years = 15
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