our family just took out a 1-year $5000 personal loan to finance a home improvement project. The interest rate on the loan is 9%, with monthly compounding. How much is your family's monthly payment?
our family just took out a 1-year $5000 personal loan to finance a home improvement project. The interest rate on the loan is 9%, with monthly compounding. How much is your family's monthly payment?
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
Related questions
Question
Your family just took out a 1-year $5000 personal loan to finance a home improvement project. The interest rate on the loan is 9%, with monthly compounding. How much is your family's monthly payment?
Expert Solution
Step 1
The given problem can be solved using PMT function in excel. PMT provides amount of payment for a given rate, no. of periods and present value.
Step by step
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