Final answer:
To enter a formula for the monthly payment of a $1,000,000 loan at 6% over 30 years in Excel, input the amortization formula directly into cell A11, using numbers for the principal, monthly interest rate, and total number of payments.
Step-by-step explanation:
The question relates to entering a formula in cell A11 to reference the monthly payment amount for a loan without using a function. In the example provided, to calculate the monthly payment for a $1,000,000 house loan over 30 years with a 6% interest rate convertible monthly, we would use the formula for an amortizing loan payment. This is a typical problem in a spreadsheet application like Microsoft Excel and falls under the category of Computers and Technology, specifically using spreadsheet software for financial calculations.
Using provided information and not the functions of a spreadsheet tool, you would typically set up the calculation with the amortization formula, which is:
Monthly payment = P * (r(1+r)^n) / ((1+r)^n-1)
Where:
- P is the principal amount of the loan, which is $1,000,000 in this case.
- r is the monthly interest rate, so for a 6% annual rate, we would use 0.06/12.
- n is the total number of payments, which would be 30 years times 12 months/year = 360 payments.
You would input this entire formula directly into cell A11 of your spreadsheet, replacing P, r, and n with the actual numbers from the problem to get the monthly payment.