Here's the problem:
John believes that the average American will be in debt forever. He decides to create a table that demonstrates this. He thinks that given 60 months (5 years) to get out of debt and the annual percentage rates 1-5 and 7-15 the percentage of the balance required to be paid monthly would be far beyond the average consumer's ability to repay.
Given the following graph, create an excel formula that when the monthly payment is entered, displays the annual percentage rate.
monthly percentage of balance/apr
1.75-1.79%/1%
1.80-1.84%/2%
1.85-1.89%/3%
1.90-1.94%/4%
1.95-1.99%/5%
2.00-2.04%/7%
2.05-2.09%/8%
2.10-2.14%/9%
2.15-2.19%/10%
2.20-2.24%/11%
2.25-2.29%/12%
2.30-2.34%/13%
2.35-2.39%/14%
2.40%/15%
>2.40%/16%
2 answers