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After a long confinement period, you are looking for a tour around the world

Finance

After a long confinement period, you are looking for a tour around the world. To finance yo dream, the bank Take It For Granted offers you a $58,600 loan in the form of a 60-month fix payment at an annual rate of 52%. 
(a) Compute what the monthly payment will be. 
(6 mar 
 

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Computation of Monthly Payment using PMT Function in Excel:

=pmt(rate,nper,-pv,fv)

Here,

PMT = Monthly Payment = ?

Rate = 5.2%/12 

Nper = 60 months

PV = $58,600
FV = 0

Substituting the values in formula:

=pmt(5.2%/12,60,-58600,0)

PMT or Monthly Payment = $1,111.23

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