Question

=-PMT(0.04/12, 12*6, 32000)

Answer 1

[AI-generated answer — Explain Bot]

The given expression is a financial function in Microsoft Excel, which calculates the monthly payment required to pay off a loan or investment with a fixed interest rate, periodic payments, and a constant principal.

To evaluate the expression "-PMT(0.04/12, 12*6, 32000)", you can follow these steps:
1. Divide the annual interest rate by the number of compounding periods per year. In this case, the annual interest rate is 0.04 (or 4%), and the compounding period is monthly. So, 0.04/12 = 0.00333.
2. Multiply the number of years by the compounding periods per year. Here, 12*6 equals 72 months.
3. The third argument, 32000, represents the present value, which is the initial loan amount or investment.
4. Replace the expression with the numerical values: -PMT(0.00333, 72, 32000).

By evaluating this expression, you will get the monthly payment required to pay off a $32,000 loan over a 6-year period with an annual interest rate of 4%, compounded monthly.