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Liam has three other options for purchasing the Charles Street property. In the first scenario, he could borrow additional money to fund a renovation of the building. He wants to determine the monthly payment for the first scenario. a)In cell G10, insert a formula using the PMT function using the monthly interest rate (cell G6), the loan period in months (cell G8), and the loan amount (cell G4) to calculate the monthly payment for the renovation scenario.

Liam has three other options for purchasing the Charles Street property. In the first scenario, he could borrow additional money to fund a renovation of the building. He wants to determine the monthly payment for the first scenario. a)In cell G10, insert a formula using the PMT function using the monthly interest rate (cell G6), the loan period in months (cell G8), and the loan amount (cell G4) to calculate the monthly payment for the renovation scenario.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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1)Liam has three other options for purchasing the Charles Street property. In the first scenario, he could borrow additional money to fund a renovation of the building. He wants to determine the monthly payment for the first scenario.

a)In cell G10, insert a formula using the PMT function using the monthly interest rate (cell G6), the loan period in months (cell G8), and the loan amount (cell G4) to calculate the monthly payment for the renovation scenario.

View Insert Format Tools Data Window Help 16% Fri 3:57 PM AutoSave a SC_EX19_4a_AisetouMagassouba_1 OFF ... Home Insert Draw Page Layout Formulas Data Review View O Tell me A Share Comments 2010 raw Trebuchet MS (Bo... Custom Conditional Formatting Insert v 11 V Format as Table v Delete v B I U $ v % 00 00 →0 Editing Analyze Data Paste Sensitivity na A Cell Styles v Format v G10 fx 1941 А C D E F G H J K M N 1 New Office Building 2 Loan Calculator 3 Loan Payment Calculator Scenarios Renovation 20 Years 8 Years $ 1,020,000 4 Date 5 Property 6 Price 7 Down Payment 8 Loan Amount 9/15/21 Rate 4.45% Loan Amount (920,000) Charles Street Term in Months 180 Annual Interest Rate 4.45% 4.25% 4.45% $ $ 1,150,000 Monthly Payment 230,000 Total Interest (920,000) Total Cost $7,014.45 $ 2,182,601.29 $ 3,332,601.29 Month ly Interest Rate Loan Period in Years 0.37% 0.35% 0.37% 15 20 8 it Loan Period in Months 180 240 96 2 PM 9 Start Date 1/3/22 1/3/22 1/3/22 Varying Interest Rates and Terms Number of Months 10 Monthly Payment (6,000) $ (8,000) 11 Rate Future Value n/a n/a 12 $ 7,014 $ 120 180 240 6,782.10 $ 6,828.20 $ 6,874.49 $ 6,920.96 $ 6,967.62 $ 7,014.45 $ 7,061.47 $ 7,108.67 $ 7,156.05 $ 7,203.62 $ 7,251.36 $ 7,299.29 $ 7,347.39 $ 9,292.71 2$ 3.95% $ 5,550.81 5,599.29 5,648.00 5,696.96 5,746.15 5,795.57 5,845.23 5,895.13 5,945.26 5,995.62 6,046.21 6,097.03 6,148.09 13 14 4.05% 9,336.43 9,380.28 9,424.25 $ $ 2$ $ 15 4.15% t 16 4.25% 1 PM 9,468.35 9,512.58 $ 2$ 17 4.35% 18 4.45% $ 19 4.55% 9,556.92 9,601.40 $ $ 20 4.65% $ 9,645.99 $ 21 4.75% $ 9,690.71 2$ 22 4.85% 9,735.56 9,780.53 $ $ 23 4.95% t 24 5.05% $ 5 PM 25 5.15% 9,825.62 26 27 28 29 30 ot M CD 31 32 33 Documentation Loan Calculator Properties Equipment Loan + Ready + 100% Special_Programs_ Transfer...est copy 1150 words English (United States) E ] Focus + 180% 2022-02...3 PM CB 2022-02...2.39 PM 2022-02...7.00 PM 关 曲
Transcribed Image Text:View Insert Format Tools Data Window Help 16% Fri 3:57 PM AutoSave a SC_EX19_4a_AisetouMagassouba_1 OFF ... Home Insert Draw Page Layout Formulas Data Review View O Tell me A Share Comments 2010 raw Trebuchet MS (Bo... Custom Conditional Formatting Insert v 11 V Format as Table v Delete v B I U $ v % 00 00 →0 Editing Analyze Data Paste Sensitivity na A Cell Styles v Format v G10 fx 1941 А C D E F G H J K M N 1 New Office Building 2 Loan Calculator 3 Loan Payment Calculator Scenarios Renovation 20 Years 8 Years $ 1,020,000 4 Date 5 Property 6 Price 7 Down Payment 8 Loan Amount 9/15/21 Rate 4.45% Loan Amount (920,000) Charles Street Term in Months 180 Annual Interest Rate 4.45% 4.25% 4.45% $ $ 1,150,000 Monthly Payment 230,000 Total Interest (920,000) Total Cost $7,014.45 $ 2,182,601.29 $ 3,332,601.29 Month ly Interest Rate Loan Period in Years 0.37% 0.35% 0.37% 15 20 8 it Loan Period in Months 180 240 96 2 PM 9 Start Date 1/3/22 1/3/22 1/3/22 Varying Interest Rates and Terms Number of Months 10 Monthly Payment (6,000) $ (8,000) 11 Rate Future Value n/a n/a 12 $ 7,014 $ 120 180 240 6,782.10 $ 6,828.20 $ 6,874.49 $ 6,920.96 $ 6,967.62 $ 7,014.45 $ 7,061.47 $ 7,108.67 $ 7,156.05 $ 7,203.62 $ 7,251.36 $ 7,299.29 $ 7,347.39 $ 9,292.71 2$ 3.95% $ 5,550.81 5,599.29 5,648.00 5,696.96 5,746.15 5,795.57 5,845.23 5,895.13 5,945.26 5,995.62 6,046.21 6,097.03 6,148.09 13 14 4.05% 9,336.43 9,380.28 9,424.25 $ $ 2$ $ 15 4.15% t 16 4.25% 1 PM 9,468.35 9,512.58 $ 2$ 17 4.35% 18 4.45% $ 19 4.55% 9,556.92 9,601.40 $ $ 20 4.65% $ 9,645.99 $ 21 4.75% $ 9,690.71 2$ 22 4.85% 9,735.56 9,780.53 $ $ 23 4.95% t 24 5.05% $ 5 PM 25 5.15% 9,825.62 26 27 28 29 30 ot M CD 31 32 33 Documentation Loan Calculator Properties Equipment Loan + Ready + 100% Special_Programs_ Transfer...est copy 1150 words English (United States) E ] Focus + 180% 2022-02...3 PM CB 2022-02...2.39 PM 2022-02...7.00 PM 关 曲
Expert Solution
Given,

Loan Amount = $1,020,000

Annual Interest Rate = 4.45%

Monthly Interest Rate = 0.37%

Loan Period in Years = 15

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