Case B - You estimate that you will have $43,000 of school loans by the time you graduate. Your school loan is to be paid off over 10 years but you plan to pay it off over a 4 year period with payments being made at the END of each MONTH for the 4 years following graduation. Assume your school loans charge 6% interest compounded MONTHLY. Prepare a schedule to show (1) the month number (i.e. #1 - #48), (2) the beginning loan balance each month, (3) the payment each month, (4) the amount of interest in each monthly payment, (5) the amount of principal in each monthly payment, and (6) the ending balance each month. Format each of the amounts with two decimals. Please include totals at the bottom of your spreadsheet for (1) the amount of payments, (2) the amount of interest, and (3) the amount of principal which was paid during the 48 month term of the loan.
Case B - You estimate that you will have $43,000 of school loans by the time you graduate. Your school loan is to be paid off over 10 years but you plan to pay it off over a 4 year period with payments being made at the END of each MONTH for the 4 years following graduation. Assume your school loans charge 6% interest compounded MONTHLY. Prepare a schedule to show (1) the month number (i.e. #1 - #48), (2) the beginning loan balance each month, (3) the payment each month, (4) the amount of interest in each monthly payment, (5) the amount of principal in each monthly payment, and (6) the ending balance each month. Format each of the amounts with two decimals. Please include totals at the bottom of your spreadsheet for (1) the amount of payments, (2) the amount of interest, and (3) the amount of principal which was paid during the 48 month term of the loan.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Done with Case A. Need help the rest.
Transcribed Image Text:**Case A** - You have decided to start planning for your retirement. You already have $11,000 in your investment account. You plan to put an additional $4,000 into the account at the BEGINNING of each year for the next 10 years and then put $6,000 into the account at the BEGINNING of each of the following 30 years. Your account is expected to grow at 6.5% interest (tax-free) annually.
Prepare a schedule to show (1.) the year (1 through 40), (2.) the beginning balance each year, (3.) the amount of interest earned each year, (4.) the deposit each year, and (5.) the ending balance each year. **Format each of the dollar amounts with two decimals.**
Please include totals at the bottom of your spreadsheet for (1) the amount of interest and (2) the amount of deposits during the entire 40-year (10 + 30) year time.
**Case B** - You estimate that you will have $43,000 of school loans by the time you graduate. Your school loan is to be paid off over 10 years but you plan to pay it off over a 4-year period with payments being made at the END of each MONTH for the 4 years following graduation. Assume your school loans charge 6% interest compounded MONTHLY.
Prepare a schedule to show (1) the month number (i.e. #1 - #48), (2) the beginning loan balance each month, (3) the payment each month, (4) the amount of interest in each monthly payment, (5) the amount of principal in each monthly payment, and (6) the ending balance each month. **Format each of the amounts with two decimals.**
Please include totals at the bottom of your spreadsheet for (1) the amount of payments, (2) the amount of interest, and (3) the amount of principal which was paid during the 48-month term of the loan.
Transcribed Image Text:**Case C:**
After attending a meeting with The Accounting Society, you were inspired to pursue a retirement goal of $2,000,000. You will begin by saving $6,000 on January 1, 2022. Post-graduation, starting January 1, 2025, you plan to make additional equal annual deposits at the beginning of each of the next 30 years into a fund earning 7% interest compounded annually.
**Schedule Requirements:**
- List the year (2022, 2023, etc.).
- Beginning balance of each year.
- Amount deposited each year.
- Interest earned each year.
- Ending balance each year.
Include totals at the end for deposits and interest earned over 33 years (3 years without deposits and 30 years with deposits). Format amounts with two decimals.
**Case D:**
Your company sells the following furniture products:
| Furniture Product | Sales in 2019 | Sales in 2020 |
|-------------------|---------------|---------------|
| Sofas | $86,070 | $93,402 |
| Loveseats | $121,492 | $129,627 |
| Chairs | $153,098 | $96,304 |
| Ottomans | $42,449 | $33,608 |
| Beds | $63,208 | $85,966 |
| Dressers | $56,294 | $67,201 |
| Tables | $31,648 | $55,023 |
| TOTALS | You figure | You figure |
**Tasks:**
1. Create a table with all information, totals at the end of sales columns.
- Sort alphabetically by product.
- Sort from highest to lowest sales in 2020.
2. Charts:
- Create a clustered column chart sorted alphabetically showing 2019 and 2020 sales.
- Create a pie chart sorted by 2020 sales for each product, showing percentage of total.
These tasks help understand financial planning, data organization, and visualization in spreadsheets and charts.
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