Question 5
10 pts
You borrow $400,000 at a rate of 5% per year compounded monthly and make monthly payments for 2 years to
repay the loan. What Excel function can be used to calculate the loan payment amount?
=PMT((5/12)%, 240, -400000)
=PMT(5%, 20, -400000)
=PMT((5/12)%, 24, -400000)
=PMT(5%, 240, 400000)