Loans: PMT and NPER practice exercises
Work out the monthly payment on a loan, how many months it takes to pay one off and how much interest it costs in total.
- 1Monthly loan payment with PMTIn B5, work out the monthly payment on the loan with PMT. The rate and the number of payments must both be monthly: PMT(B3/12,B4*12,-B2).
- 2Months to pay off a loan with NPERPremiumIn B5, work out how many monthly payments of 500 it takes to pay off the loan, with NPER. Use the monthly rate and give the payment and the loan opposite signs: NPER(B3/12,-B4,B2).
- 3Total interest on a loanPremiumIn B5, work out how much interest the loan costs in total: all the monthly payments added up, minus the amount borrowed. That is PMT(B3/12,B4*12,-B2)*B4*12-B2.