Question
Asked Jan 26, 2019
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What excell formula is used to determine APR when given present value and future value. It has to be determined for one year when compounded (1) semiannually and (2) monthly

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Expert Answer

Step 1

Step1: Calculating step of APR for a year when compounded semi-annually in excel. We have,

  1. Calculating the monthly payment for the mortgage in the Excel. We have,

The Excel formula is as follows:

=PMT (Yearly Interest Rate/2, Duration of loan (Duration of loan x 2), Amount Borrowed)

  1. Calculating the APR rate (semi-annually) fo...

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