The management has decided to go for upfront payments for 1-year instances. AWS has tie-up with eCommerceBanque Inc, wherein the bank provides loan to AWS customers for paying the upfornt payment for the reserved instance. The bank has provided loan of $2102 to the firm. The loan duration is for 1 year and the payments are required to be paid monthly (at the end). The monthly payment is $187.61 (that is the same amount charged by AWS). (i) Enter the values of number of periods, Monthly payments, Present Value and Type in cells C32, C33, C34 and C36 respectively. (ii) Write a formula in cell C37 to compute the monthly interest rate charged by the bank. (iii) Write a formula in cell C38 to convert the value calculated in C37 to annual rate.
The management has decided to go for upfront payments for 1-year instances. AWS has tie-up with eCommerceBanque Inc, wherein the bank provides loan to AWS customers for paying the upfornt payment for the reserved instance. The bank has provided loan of $2102 to the firm. The loan duration is for 1 year and the payments are required to be paid monthly (at the end). The monthly payment is $187.61 (that is the same amount charged by AWS). (i) Enter the values of number of periods, Monthly payments, Present Value and Type in cells C32, C33, C34 and C36 respectively. (ii) Write a formula in cell C37 to compute the monthly interest rate charged by the bank. (iii) Write a formula in cell C38 to convert the value calculated in C37 to annual rate.
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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I need help with writing a formula in Excel.
| 6. The management has decided to go for upfront payments for 1-year instances. AWS has tie-up with eCommerceBanque Inc, wherein the bank provides loan to AWS customers for paying the upfornt payment for the reserved instance. The bank has provided loan of $2102 to the firm. The loan duration is for 1 year and the payments are required to be paid monthly (at the end). The monthly payment is $187.61 (that is the same amount charged by AWS). |
| (i) Enter the values of number of periods, Monthly payments, (ii) Write a formula in cell C37 to compute the monthly interest rate charged by the bank. (iii) Write a formula in cell C38 to convert the value calculated in C37 to annual rate. |
Transcribed Image Text:The montnly payment is 2 ged by AwS:--
6. The management has decided to go for upfront payments for 1-year instances. AWS has tie-up with eCommerceBanque Inc, wherein the bank provides
loan to AWS customers for paying the upfornt payment for the reserved instance.
The bank has provided loan of $2102 to the firm. The loan duration is for 1 year and the payments are required to be paid monthly (at the end).
is $187.61 (that is the same amount charged I
{(i) Enter the values of number of periods, Monthly payments, Present Value and Type in cells C32, C33, C34 and C36 respectively.
(ii) Write a formula in cell C37 to compute the monthly interest rate charged by the bank.
(iii) Write a formula in cell C38 to convert the value calculated in C37 to annual rate.
Nper
12
Correct Answer
PMT
$187.61
$2,102.00
PV
Rate
1.072%
Future Value (FV)
|Туре
Annualized Rate (APR)
12.863%
Rate
Annualized Rate (APR)
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