I need formulas and cell references Financing A Home A newly married couple secu

Question

I need formulas and cell references

Financing A Home A newly married couple secured a bank loan of $96,000 to help finance the purchase of a house. The bank charges interest at a rate of 9% per year on the unpaid balance, and interest computations are made at the end of each month. They have agreed to repay the loan in equal monthly installments over 25 years. What should be the size of each payment if the loan is to be amortized at the end of the term?

P = $ 96,000.00 P = present value i = 0.7500% i = interest rate per period n = 300 n = total number of periods R = ? $ 805.63 R = amount of each installment $805.63

I need formulas and cell references.

Explanation / Answer

R = P×i×(1 + i)n/((1 + i)n - 1)

here P=96000, i=0.75%=0.0075, n=300

R=96000*0.0075*(1.0075)300/(1.0075)300 -1)=96000*0.0075*9.4084/(9.4084 - 1)=805.6285

using excel (1.0075)300= 9.4084 ( ms-excel command=POWER(1.0075,300) )

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