Sadie Harris is buying a car and needs a loan. She is borrowing $28,400 at a rate of 5% interest. She will make monthly payments for five years. Calculate the payment amount using excel. Use EXCEL to fill in the table below. Do the journal entries for the issuance of the loan and the first two interest payments. Payment # Payment Amount Interest Reduction in Loan Beg Bal Principal Balance 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
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In an empty cell, enter the following formula: =PMT(5%/12, 60, 28400) This formula calculates the monthly payment amount for a loan of $28,400 with a 5% annual interest rate and 60 monthly payments. Show more…
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You are ready to start completing the loan amortization table. Display the Loan worksheet. In cell B8, type a reference formula to cell B1. The balance before the first payment is identical to the loan amount. Do not type the value; use the cell reference instead. In cell B9, subtract the principal from the beginning balance on the previous row. Copy the formula to the range B10:B19.
Akash M.
Find the monthly payments and total interest for loan A
Supreeta N.
Payment Calculation Instruction: Calculate Loan Payment using PMT Function. All cells must contain formulas (i.e., typing the number directly into the cells will be graded as incorrect answers) 1.1 Susan purchases a Mazda 6 for $22,000. To pay for the car, she will make monthly payments over 4 years, annual interest rate = 5.25%. What are the monthly payments? Put the formula for the calculation in cell A6. 1.2 What is the total amount (interest and principal) that Susan will have to pay for the car? 1.3 How much interest will Susan pay? 2.1 Ryan purchases a house for $120,000 to be paid for over 30 years at an interest rate of 6.25% per year. What are the monthly payments? 2.2 What is the total amount (interest and principal) that Ryan will pay for the house? 2.3 How much interest does Ryan pay? Future Value Instruction: Calculate the amount of money using FV Function. All cells must contain formulas (i.e., typing the number directly into the cells will be graded as incorrect answers) 1.1 If John deposits $200 in the bank each month for 5 years where the annual interest rate is 7.5%, how much does he have in the bank at the end of the five years? 1.2 How much interest does John earn during the five years? 2.1 Rachel deposits $400 per month for 5 years into an account that pays 6% annually. How much is in Rachel's account at the end of the five years? 2.2 How much does Rachel actually deposit into the account? 2.3 How much interest does Rachel earn?
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