You want to buy a new car for $25,000. You put $2000 down and are given...

You want to buy a new car for $25,000. You put $2000 down and are given $2000 as trade-in for your current car. You take out a loan for the remaining $21,000. The terms of the loan are an annual interest rate of 4.8% compounded monthly. You are to make 60 equal monthly payments (end of month) to pay off the loan.

how can i get the answer using excel

Expert Solution

The amount of monthly payment on the loan can be calculated using the PMT function in excel.

In excel go to formulas, choose financial and select PMT function, the following window opens.

The monthly payment on the car loan = $ 394.37

Rahul Sunny answered 1 year ago

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