In cell B12, create a formula using the PMT function to calculate the monthly payments for loan Option A. Use the values in cells B8, B10, and B5 for the Rate, Nper, and Pv arguments, respectively, and do not enter any values for the optional arguments. Copy the formula you created in cell B12 into the range C12:D12. Inception WorkspaceBusiness Loan RequestLoan AmountAnnual Interest RatePayments per YearInterest Rate per PeriodNumber of YearsTotal PaymentsMonthly PaymentsAnnual PaymentsOption A$$Option BOption C300,000 $ 300,000 $ 350,0008.00%6.57%5.99%12120.67%10120$0.55%15180$120.50%20240

Loans are paid by the monthly payments and these monthly payments carry the payment for interest and…

Answered: Inception Workspace oan Amount Annual…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In cell B12, create a formula using the PMT function to calculate the monthly payments for loan Option A. Use the values in cells B8, B10, and B5 for the Rate, Nper, and Pv arguments, respectively, and do not enter any values for the optional arguments. Copy the formula you created in cell B12 into the range C12:D12.

Inception Workspace
Business Loan Request
Loan Amount
Annual Interest Rate
Payments per Year
Interest Rate per Period
Number of Years
Total Payments
Monthly Payments
Annual Payments
Option A
$
$
Option B
Option C
300,000 $ 300,000 $ 350,000
8.00%
6.57%
5.99%
12
12
0.67%
10
120
$
0.55%
15
180
$
12
0.50%
20
240

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