Calculating Quarterly Payment for a Loan in Excel

To calculate the quarterly payment required for a loan, follow these steps:

1. Enter the loan amount in cell A1.
2. Enter the annual interest rate in cell A2.
3. Enter the loan term in years in cell A3.
4. Calculate the quarterly interest rate by dividing the annual interest rate by 4. Enter the formula "=A2/4" in cell A4.
5. Calculate the total number of quarterly payments over the life of the loan. Enter the value "24" in cell A5.
6. Use the PMT function to calculate the quarterly payment required for the loan. Enter the formula "=PMT(A4,A5,A1)" in cell A6.

The quarterly payment required for a $20,000 loan at an annual interest rate of 10% for 6 years is .