# (SOLVED) A loan should be fully repaid in 60 monthly instalments of $5 million.

**Discipline:** Accounting

**Type of Paper:** Creative writing

**Academic Level:** High school

**Paper Format:** APA

**Pages:**1

**Words:**67

Question

**Question :**

**1.
A loan should be fully repaid in 60 monthly installments of $5 million.
If the loan is $250 million, what will be the total interest payment for
the first year?**

**2.
A loan should be fully repaid in 60 monthly installments of $5 million.
If the loan is $250 million, what is the effective interest rate (j12)
of the loan? **

**3.
A loan should be fully repaid in 60 monthly instalments of $5 million.
If the loan is $250 million, what will be the principal repayment during
the first year?**

**Please provide and explain how to calculate and get the answer exactly like this, using excel!**

**1)**

**The first step is to find the interest rate of the loan using the RATE function in excel.**

**Interest rate per month = 0.62 % **