Question

On the MarketingConsultants worksheet, in cells D10:H13, use a PMT function to calculate the end of the month payment amount. Enter one formula that can be entered in cell D10 and filled to the remaining cells. To calculate the amount for the pv argument, subtract the down payment amount from the retainer amount. The formula results should be positive.

Hiring Marketing Consultants Analysis ainted Paradise RESORT&SPA $ 125,000 5 4 Retainer Amount Term (Years) Monthly Loan Payments Down Payment $ 10,000 15,000 20,000 $25,000$30,000 2.0%, 2.5% 3.0% 3.5%. 10 12 13 15 16

Answer 1

To calculate the end of the month payment amount using the PMT function, subtract the down payment amount from the retainer amount to get the present value (PV) argument, then use the PMT function to calculate the monthly loan payments.

Step-by-step explanation:

To calculate the end of the month payment amount using the PMT function in cells D10:H13, you will need to subtract the down payment amount from the retainer amount to get the present value (PV) argument. Then, you can use the PMT function to calculate the monthly loan payments. The formula should be entered in cell D10 and filled to the remaining cells.

For example, in cell D10, the formula would be: =PMT(3%,15,-17000)

Where 3% is the annual interest rate, 15 is the number of years, and -17000 is the present value calculated by subtracting the down payment ($10,000) from the retainer amount ($25,000).