Question

In cell B8, enter a formula using the NPER function to calculate the number of monthly payments for a loan given the interest rate (rate) in cell B6, the monthly payment amount (pmt) in cell B7, and the loan amount (pv) in cell B4 as the function arguments

Answer 1

To calculate the number of monthly payments for a loan, you can use the NPER function in Microsoft Excel.

Step-by-step explanation:

To calculate the number of monthly payments for a loan, you can use the NPER function in Microsoft Excel. The NPER function calculates the number of payment periods required to repay a loan, based on a fixed interest rate and regular payments.

The formula in cell B8 would be: =NPER(B6/12, B7, -B4)

• In this formula, B6 should contain the interest rate divided by 12, since it is a monthly interest rate.
• B7 should contain the monthly payment amount.
• B4 should contain the loan amount, but with a negative sign (-) to indicate an outgoing payment.

Make sure to format the result in cell B8 as a whole number, as it represents the number of monthly payments.