Homework SourseDave and Jana are considering taking out a 100000 mortgage l
Dave and Jana are considering taking out a $100,000 mortgage loan to purchase a house. They are considering a 15-year loan at an annual rate of 7.4%. Calculate the monthly payment for this scenario. Assume that the payment is made at the end of the month. (Hint: Use Excel\'s PMT function. See homework problem 10-17.)
Solution
PMT(rate,nper,pv)
| rate | Annual rate | 7.40% | |||
| nper | Number of payments | 180 | 15*12 | ||
| pv | loan amount | 100000 | |||
| Monthly payment | $921.34 | PMT(rate,nper,pv) | |||
| how to compute Monthly payment in excel - use this equation = PMT (rate/12,nper,pv) where rate is annual rate, nper is number of months and pv is present value. |
