Practice with APR

In this exercise, you will get practice using the RATE() function and the PMT() function to calculate APR when there are fees on a loan.

Remember:

Points are 0.01% of the opening balance of a loan.
Since you put a negative on the PMT() to make it a positive number, you need to put a negative on the payment in the RATE() function to calculate properly.
To fully amortize a loan, all fees need to be included before calculating payments.

This exercise is part of the course

Loan Amortization in Google Sheets

Exercise instructions

In column G, fill in the correct fee based on the principal and number of points.
In column E, fill in the PMT() formula based on the principal and fees.
In column H, calculate the APR using the RATE() function.

Hands-on interactive exercise

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