ModeldrillMonthly payment for three loans
A financial modeling exercise from Modeldrill. Solve it with a live spreadsheet grid in your browser, with Fill right and Fill down, and it is checked the moment you submit.
The task
Work out the level monthly payment for each loan with PMT. The rates are annual and the terms are in years, so convert both to months. Write E5 and fill down to E7. Show the payment as a positive number.
What this exercise teaches
PMT follows cash-flow signs: money received is positive and money paid is negative. Passing -B5 (or wrapping the result in a minus) flips the payment to a positive figure.
A hint if you get stuck
PMT(rate per period, number of periods, present value). Monthly rate is C5/12, months are D5*12. A negative amount gives a positive payment.
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