Homework Help is Here – Start Your Trial Now!
Engineering
Computer Engineering
The screenshot is a demonstration using pmt function to show the monthly (periodically) mortgage payment with the loan amount, under different annual interest rate and the duration (years) of the loan. The definition of the pmt funtion is pmt(rate, nper, pv). Assume that you enter a single formula in B7, then you replicate (copy and paste) the formula from B7 to C7:J7, then replicate the entire row, B7:J7, to B15:J15. Now, the view of the formula in cell J15 is the following:

The screenshot is a demonstration using pmt function to show the monthly (periodically) mortgage payment with the loan amount, under different annual interest rate and the duration (years) of the loan. The definition of the pmt funtion is pmt(rate, nper, pv). Assume that you enter a single formula in B7, then you replicate (copy and paste) the formula from B7 to C7:J7, then replicate the entire row, B7:J7, to B15:J15. Now, the view of the formula in cell J15 is the following:

Computer Networking: A Top-Down Approach (7th Edition)
Computer Networking: A Top-Down Approach (7th Edition)
7th Edition
ISBN:9780133594140
Author:James Kurose, Keith Ross
Publisher:James Kurose, Keith Ross
Chapter1: Computer Networks And The Internet
Section: Chapter Questions
Problem R1RQ: What is the difference between a host and an end system? List several different types of end...
See similar textbooks
icon
Related questions
Question
The image illustrates a table displaying the monthly mortgage payments for a $500,000 loan under different interest rates and loan durations using the PMT function. The following parameters are outlined: - **Loan Amount**: $500,000.00 - **Annual Frequency**: 12 (monthly payments) - **Interest Increment**: 0.125% - **Duration Increment**: 5 years ### Table Explanation The table shows the annual interest rates across columns (5.000% to 6.000%) and the loan duration in years down the rows (10 to 50 years, increasing in five-year increments). Each cell within the table represents the calculated monthly payment using the PMT function for the specified interest rate and duration. For example: - At 5.000% interest for 10 years, the monthly payment would be ($5,303.28). - At 6.000% interest for 50 years, the monthly payment would be ($2,632.02). ### PMT Function Explanation The PMT function is used to calculate mortgage payments, with the syntax `pmt(rate, nper, pv)` where: - `rate` is the interest rate for each period. - `nper` is the total number of payments. - `pv` is the loan amount (present value). The formula is applied in cell B7 and replicated across the rows and columns. The formula in cell J15 is given as one of the following: - =PMT(J$6/$B$2,$A15*$B$2,$B$1) - =PMT(J6/$B2,$A15*$B2,$B$1) - =PMT(J6/B2,A15*B2,B1) - =PMT($J$6/$B$2,$A15*$B$2,$B$1) The choice of formula encapsulates the application of the interest rate, payment frequency, and total loan duration to calculate the monthly payments. ### Diagram Description The table serves as a visual representation to help learners understand how changing the interest rates and loan durations impact monthly payments, providing practical insight into loan management.
Transcribed Image Text:The image illustrates a table displaying the monthly mortgage payments for a $500,000 loan under different interest rates and loan durations using the PMT function. The following parameters are outlined: - **Loan Amount**: $500,000.00 - **Annual Frequency**: 12 (monthly payments) - **Interest Increment**: 0.125% - **Duration Increment**: 5 years ### Table Explanation The table shows the annual interest rates across columns (5.000% to 6.000%) and the loan duration in years down the rows (10 to 50 years, increasing in five-year increments). Each cell within the table represents the calculated monthly payment using the PMT function for the specified interest rate and duration. For example: - At 5.000% interest for 10 years, the monthly payment would be ($5,303.28). - At 6.000% interest for 50 years, the monthly payment would be ($2,632.02). ### PMT Function Explanation The PMT function is used to calculate mortgage payments, with the syntax `pmt(rate, nper, pv)` where: - `rate` is the interest rate for each period. - `nper` is the total number of payments. - `pv` is the loan amount (present value). The formula is applied in cell B7 and replicated across the rows and columns. The formula in cell J15 is given as one of the following: - =PMT(J$6/$B$2,$A15*$B$2,$B$1) - =PMT(J6/$B2,$A15*$B2,$B$1) - =PMT(J6/B2,A15*B2,B1) - =PMT($J$6/$B$2,$A15*$B$2,$B$1) The choice of formula encapsulates the application of the interest rate, payment frequency, and total loan duration to calculate the monthly payments. ### Diagram Description The table serves as a visual representation to help learners understand how changing the interest rates and loan durations impact monthly payments, providing practical insight into loan management.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
Computer Networking: A Top-Down Approach (7th Edi…
Computer Networking: A Top-Down Approach (7th Edi…
Computer Engineering
ISBN:
9780133594140
Author:
James Kurose, Keith Ross
Publisher:
PEARSON
Computer Organization and Design MIPS Edition, Fi…
Computer Organization and Design MIPS Edition, Fi…
Computer Engineering
ISBN:
9780124077263
Author:
David A. Patterson, John L. Hennessy
Publisher:
Elsevier Science
Network+ Guide to Networks (MindTap Course List)
Network+ Guide to Networks (MindTap Course List)
Computer Engineering
ISBN:
9781337569330
Author:
Jill West, Tamara Dean, Jean Andrews
Publisher:
Cengage Learning
Concepts of Database Management
Concepts of Database Management
Computer Engineering
ISBN:
9781337093422
Author:
Joy L. Starks, Philip J. Pratt, Mary Z. Last
Publisher:
Cengage Learning
Prelude to Programming
Prelude to Programming
Computer Engineering
ISBN:
9780133750423
Author:
VENIT, Stewart
Publisher:
Pearson Education
Sc Business Data Communications and Networking, T…
Sc Business Data Communications and Networking, T…
Computer Engineering
ISBN:
9781119368830
Author:
FITZGERALD
Publisher:
WILEY
SEE MORE TEXTBOOKS