1. What is the monthly payment on a fixed rate, 30-year, fully amortizing loan for $600,000 at 5.5%? (use PMT function) Loan Amount $600,000.00 Answer $3,406.73 Years 30 Periods Per Year 12 Interest Rate 5.50% 2. What is the balance at the end of year 7 on the loan in the previous question? (use the PV rule on Page 15 of the Time Value of Money Primer from Module 3) Loan Amount Answer Years Periods Per Year Interest Rate Balance Month
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To calculate the monthly payment on a fixed rate, 30-year, fully amortizing loan, we can use the PMT function in Excel or any financial calculator. The formula for PMT is: PMT(rate, nper, pv, [fv], [type]) Where: - rate is the interest rate per period (monthly Show more…
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