The correct Excel command to calculate the monthly payment on a house that cost $315,000 with a down payment of $28,725, a conventional 30-year loan, and an annual interest rate of 5.2% is:

=PMT(0.052/12,360,-286275,0)

Here's the step-by-step breakdown:

1. The rate is the annual interest rate divided by 12 to get the monthly rate. So, 0.052 (5.2% as a decimal) divided by 12 is 0.004333333.

2. The nper is the number of periods, which is 30 years times 12 months, equaling 360.

3. The PV, or present value, is the initial loan amount. This is the total cost of the house minus the down payment, so $315,000 - $28,725 = $286,275. This is input as a negative value because it represents a debt.

4. The FV, or future value, is what you want the balance to be after the last payment is made. In this case, it's 0 because you want to fully pay off the loan.

So, the correct command is =PMT(0.052/12,360,-286275,0).

Question

The correct Excel command to calculate the monthly payment on a house that cost $315,000 with a down payment of $28,725, a conventional 30-year loan, and an annual interest rate of 5.2% is:

=PMT(0.052/12,360,-286275,0)

Here's the step-by-step breakdown:

1. The rate is the annual interest rate divided by 12 to get the monthly rate. So, 0.052 (5.2% as a decimal) divided by 12 is 0.004333333.

2. The nper is the number of periods, which is 30 years times 12 months, equaling 360.

3. The PV, or present value, is the initial loan amount. This is the total cost of the house minus the down payment, so $315,000 - $28,725 = $286,275. This is input as a negative value because it represents a debt.

4. The FV, or future value, is what you want the balance to be after the last payment is made. In this case, it's 0 because you want to fully pay off the loan.

So, the correct command is =PMT(0.052/12,360,-286275,0).

Knowee AI · Accepted Answer

The correct Excel command to calculate the monthly payment on a house that cost $315,000 with a down payment of $28,725, a conventional 30-year loan, and an annual interest rate of 5.2% is:

=PMT(0.052/12,360,-286275,0)

Here's the step-by-step breakdown:

1. The rate is the annual interest rate divided by 12 to get the monthly rate. So, 0.052 (5.2% as a decimal) divided by 12 is 0.004333333.

2. The nper is the number of periods, which is 30 years times 12 months, equaling 360.

3. The PV, or present value, is the initial loan amount. This is the total cost of the house minus the down payment, so $315,000 - $28,725 = $286,275. This is input as a negative value because it represents a debt.

4. The FV, or future value, is what you want the balance to be after the last payment is made. In this case, it's 0 because you want to fully pay off the loan.

So, the correct command is =PMT(0.052/12,360,-286275,0).

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