Question

Liam wants to compare monthly payments for interest rates that vary from 3.95% to 5.15% and for terms of 120, 180, and 240 months. He has already set up the structure for a data table in the range A12:D25. Create a two-variable data table as follows to provide the comparison that Liam requests: a. In cell A12, enter a formula without using a function that references the monthly payment amount (cell D6) because Liam wants to compare the monthly payments.

Answer 1

Liam can compare different monthly payment amounts by placing a cell reference (e.g., =D6) in cell A12 of his data table, which will populate varying interest rates and loan terms in Microsoft Excel's Data Table to see their effect on payments.

Step-by-step explanation:

To create a two-variable data table that shows the comparison of different monthly payments for varying interest rates and terms, Liam needs to use a formula that references the monthly payment calculation from cell D6. This could be a simple cell reference like =D6, placed in cell A12. Liam will then fill in the relevant interest rates in the row immediately below and the different terms in the column directly to the right. By using tools such as Microsoft Excel's Data Table feature, Liam can quickly see how changing the interest rates and the loan terms affects the monthly payment amount.

For example, if the table's row headers from A13 to A25 are populated with the interest rates ranging from 3.95% to 5.15%, and the column headers from B11 to D11 are populated with the terms 120, 180, and 240 months, then the data table feature will calculate the different monthly payments and populate the table accordingly.

Answer 2

To create a two-variable data table to compare monthly payments for interest rates and loan terms, use the PMT function in Excel. Then, use the Data Table feature to show the comparison.

Step-by-step explanation:

To create a two-variable data table to compare monthly payments for interest rates and loan terms, you can use the PMT function in Excel. In cell A12, enter the formula =PMT(B6/12, C6, D5) where B6 references the interest rate, C6 references the loan term, and D5 references the loan amount. This formula calculates the monthly payment amount. Then, you can use the Data Table feature in Excel to show the comparison of monthly payments for different interest rates and loan terms.