Time for action – calculating mortgage payments
You are planning to borrow $30,000 from the bank towards the purchase of a truck for your business. You will be paying it off fully in three years in 36 equal monthly payments. The bank has told you that the interest APR ( Annual Percentage Rate) is 9.5%. You asked and found that the APR will be compounded monthly at the end of the month. You want to calculate and see what the monthly payment will be before heading to the bank for finalizing the loan.
From the menu, select Tools | Financial Calculator. The Financial Calculator window will open with a sample calculation already filled.
Change the Present Value to $30,000, Interest Rate to 9.50%, Payment periods to 36, and Future Value to 0.00. Clear the Periodic payment. As soon as you clear one of the fields, the Calculate button will become enabled. Click it.
The Periodic payment will be filled with an amount in parentheses. This is the equated monthly installment. The Payment Total at the bottom...
