![]() If you want to compute a monthly payment and have an annual rate, the rate must be divided by 12. Matching the rate to the payment frequency is important. 0033333 Let’s reflect this in our worksheet. We want a monthly payment for 24months ( Nper) at an annual interest rate of 4%.įirst, we need to change the annual interest rate to a monthly one by dividing 4% by 12 =. Here we have a value today ( Pv) of $24,000. So, the question is – What is the monthly payment? ![]() You want to purchase a car and finance $24,000 over 24 months at an interest rate of 4%. ![]() Computing the Periodic Payment for a Loan Excel Financial FunctionĬomputing the periodic payment is probably the most used Excel financial function simply because it is something everyone uses. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |