a. In cell D5, start to enter a formula using the PMT function. b. For the rate argument, divide the Rate by \( \mathbf{1 2} \) to use the monthly interest rate. c. For the nper argument, use the Term_in_Months to specify the number of periods. d. For the pv argument, use the Loan_Amt to include the present value. e. Insert a negative sign \( (-) \) after the equal sign in the formula to display the result as a positive amount.

Using the PMT function in Excel is a fantastic way to understand loan payments! This function calculates the periodic payment required to pay off a loan based on the interest rate, total number of payments, and loan amount. By entering the parameters correctly, you can easily see how changes in the interest rate or loan term impact your monthly payment, helping you to make better financial decisions. Watch out for common pitfalls when using the PMT function! Ensure that the rate is divided by 12 for monthly calculations — this is a big one! Also, make sure you're referencing the correct cells for Loan_Amt and Term_in_Months to avoid mistakes that could lead to incorrect payment amounts. Lastly, don’t forget to insert that negative sign; it turns the payment into a nice, positive figure, making it clear how much you will be paying out each month. Happy calculating!