Recreate the above in excel. You seek to borrow $1,500 from a friend to cover your...

Recreate the above in excel. You seek to borrow $1,500 from a friend to cover your gym fees. You promise to repay the loan in 24 monthly repayments commencing today. If the effective annual interest (EAR) rate is 20.6% what is the amount of the monthly repayment? (answer do not include $ sign; show cents eg 100.00)

Solutions

Expert Solution

Monthly payment= principal*rate*(1+rate)^time

(1+rate)^time-1

=1500*.0172*(1.0172)^24 / {(1.0172)^24-1}

=76.81

ekkarill92 answered 2 years ago

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