FormuladrillA loan payment that is far too high
An Excel formula exercise from Formuladrill. Solve it with a formula bar on a live sheet in your browser, and it is checked the moment you submit.
The task
This sheet works out the monthly payment on a car loan, the total paid and the total interest. The payment is far too high. Find the mistake and fix it.
What this exercise teaches
Mixing a yearly rate with monthly periods is a classic PMT mistake: it charges 6% a month instead of 6% a year. Divide the rate by 12 whenever the periods are months.
A hint if you get stuck
The payments are monthly, so every input to PMT has to be monthly too. Is the rate?
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