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Loan Details Payment (PMT) Monthly (End-of-month) Monthly interest rate (RATE) Months to Pay Off Loan (NPER) Amount of Loan from Bank (PV) $680.66 1.15% 48 $25,000.00 Recreate the above table in your own version of excel. The borrower wants to repay the loan in 25 months. What will be the new monthly repayment? (answer to exclude $sign and to include

Loan Details Payment (PMT) Monthly (End-of-month) Monthly interest rate (RATE) Months to Pay Off Loan (NPER) Amount of Loan from Bank (PV) $680.66 1.15% 48 $25,000.00 Recreate the above table in your own version of excel. The borrower wants to repay the loan in 25 months. What will be the new monthly repayment? (answer to exclude $sign and to include

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Can you please show me how to do this question, please?

Loan Details Payment (PMT) Monthly (End-of-month) Monthly interest rate (RATE) Months to Pay Off Loan (NPER) Amount of Loan from Bank (PV) $680.66 1.15% 48 $25,000.00 Recreate the above table in your own version of excel. The borrower wants to repay the loan in 25 months. What will be the new monthly repayment? (answer to exclude $ sign and to include cents eg 680.66, and should be a positive number)
Transcribed Image Text:Loan Details Payment (PMT) Monthly (End-of-month) Monthly interest rate (RATE) Months to Pay Off Loan (NPER) Amount of Loan from Bank (PV) $680.66 1.15% 48 $25,000.00 Recreate the above table in your own version of excel. The borrower wants to repay the loan in 25 months. What will be the new monthly repayment? (answer to exclude $ sign and to include cents eg 680.66, and should be a positive number)
Expert Solution
Step 1

If the borrower wants to pay a 48 month loan in 20 months then the installments for 20 months will be more than the installments of 48 months.

Given,

Monthly (End-of-month) Payment (PMT)=$680.66

Monthly interest rate (RATE)=1.15%

Months to Pay Off Loan (NPER)=48

Amount of Loan from Bank (PV)=$25,000.00

 

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