To calculate the total interest paid on a loan in Excel, you can use the CUMIPMT function, which returns the cumulative interest paid on a loan between two periods. Here's how to do it:

1. Open Excel and click on a cell where you want the result to be displayed.
2. Type in the following formula: `=CUMIPMT(4.8%/12, 4*12, 5400, 1, 4*12, 0)`. Let's break down what each part of this formula means:
- `4.8%/12` is the monthly interest rate (annual rate divided by 12).
- `4*12` is the total number of payments (4 years times 12 months).
- `5400` is the total loan amount.
- `1` is the first period in the calculation.
- `4*12` is the last period in the calculation.
- `0` indicates that the payment is due at the end of the period.
3. Press Enter. The result will be the total interest paid over the 4 years, but it will be a negative number.
4. To get rid of the negative sign, you can either put a minus sign in front of the formula like `=-CUMIPMT(4.8%/12, 4*12, 5400, 1, 4*12, 0)` or use the ABS function to get the absolute value like `=ABS(CUMIPMT(4.8%/12, 4*12, 5400, 1, 4*12, 0))`.
5. Press Enter. The result will be the total interest paid over the 4 years, rounded to the nearest cent.

Remember to replace the values in the formula with your own if they are different.

Question

To calculate the total interest paid on a loan in Excel, you can use the CUMIPMT function, which returns the cumulative interest paid on a loan between two periods. Here's how to do it:

1. Open Excel and click on a cell where you want the result to be displayed.
2. Type in the following formula: `=CUMIPMT(4.8%/12, 4*12, 5400, 1, 4*12, 0)`. Let's break down what each part of this formula means:
   - `4.8%/12` is the monthly interest rate (annual rate divided by 12).
   - `4*12` is the total number of payments (4 years times 12 months).
   - `5400` is the total loan amount.
   - `1` is the first period in the calculation.
   - `4*12` is the last period in the calculation.
   - `0` indicates that the payment is due at the end of the period.
3. Press Enter. The result will be the total interest paid over the 4 years, but it will be a negative number.
4. To get rid of the negative sign, you can either put a minus sign in front of the formula like `=-CUMIPMT(4.8%/12, 4*12, 5400, 1, 4*12, 0)` or use the ABS function to get the absolute value like `=ABS(CUMIPMT(4.8%/12, 4*12, 5400, 1, 4*12, 0))`.
5. Press Enter. The result will be the total interest paid over the 4 years, rounded to the nearest cent.

Remember to replace the values in the formula with your own if they are different.

Knowee AI · Accepted Answer

To calculate the total interest paid on a loan in Excel, you can use the CUMIPMT function, which returns the cumulative interest paid on a loan between two periods. Here's how to do it:

1. Open Excel and click on a cell where you want the result to be displayed.
2. Type in the following formula: `=CUMIPMT(4.8%/12, 4*12, 5400, 1, 4*12, 0)`. Let's break down what each part of this formula means:
   - `4.8%/12` is the monthly interest rate (annual rate divided by 12).
   - `4*12` is the total number of payments (4 years times 12 months).
   - `5400` is the total loan amount.
   - `1` is the first period in the calculation.
   - `4*12` is the last period in the calculation.
   - `0` indicates that the payment is due at the end of the period.
3. Press Enter. The result will be the total interest paid over the 4 years, but it will be a negative number.
4. To get rid of the negative sign, you can either put a minus sign in front of the formula like `=-CUMIPMT(4.8%/12, 4*12, 5400, 1, 4*12, 0)` or use the ABS function to get the absolute value like `=ABS(CUMIPMT(4.8%/12, 4*12, 5400, 1, 4*12, 0))`.
5. Press Enter. The result will be the total interest paid over the 4 years, rounded to the nearest cent.

Remember to replace the values in the formula with your own if they are different.

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