8. Seeing further financing opportunity with the firm, mCommerceBank has sweetend the deal further. The bank has agreed to provide loan of $2102, at a rate of 8% per annum, and payments of $95.05 per month (at the end) till the loan is repaid completely. (i) Enter the values of Present Value, Type and PMT in cells C59, C61 and C62 respectively. (ii) Write a formula in cell C58 to compute the monthly interest rate charged by the bank.(iii) Write a formula in cell C64 to compute the loan duration (number of months). A6465BAnnualized Rate (APR)Monthly RatePresent Value (PV)Future Value (FV)TypePMTс(i) Enter the values of Present Value, Type and PMT in cells C59, C61 and C62 respectively.(ii) Write a formula in cell C58 to compute the monthly interest rate charged by the bank.55 (iii) Write a formula in cell C64 to compute the loan duration (number of months).5657585960616263Loan duration(Number of months)5152 8. Seeing further financing opportunity with the firm, mCommerceBank has sweetend the deal further.53 The bank has agreed to provide loan of $2102, at a rate of 8% per annum, and payments of $95.05 per month (at the end) till the loan is repaid54 completely.D8%E0FGCorrect AnswerHLoan duration(Number of months)24.00J

Loan Amount = $2,102 Interest Rate = 8% Monthly Payment = $95.05

Answered: Seeing further financing opportunity…

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

9th Edition

ISBN:9781305635937

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter15: Working Capital Management

Section: Chapter Questions

Problem 8Q: Define each of the following loan terms, and explain how they are related to one another: the prime...

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8. Seeing further financing opportunity with the firm, mCommerceBank has sweetend the deal further.
The bank has agreed to provide loan of $2102, at a rate of 8% per annum, and payments of $95.05 per month (at the end) till the loan is repaid completely.

(i) Enter the values of Present Value, Type and PMT in cells C59, C61 and C62 respectively.
(ii) Write a formula in cell C58 to compute the monthly interest rate charged by the bank.
(iii) Write a formula in cell C64 to compute the loan duration (number of months).

A
64
65
B
Annualized Rate (APR)
Monthly Rate
Present Value (PV)
Future Value (FV)
Type
PMT
с
(i) Enter the values of Present Value, Type and PMT in cells C59, C61 and C62 respectively.
(ii) Write a formula in cell C58 to compute the monthly interest rate charged by the bank.
55 (iii) Write a formula in cell C64 to compute the loan duration (number of months).
56
57
58
59
60
61
62
63
Loan duration
(Number of months)
51
52 8. Seeing further financing opportunity with the firm, mCommerceBank has sweetend the deal further.
53 The bank has agreed to provide loan of $2102, at a rate of 8% per annum, and payments of $95.05 per month (at the end) till the loan is repaid
54 completely.
D
8%
E
0
F
G
Correct Answer
H
Loan duration
(Number of months)
24.00
J

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