Develop a general-purpose Excel spreadsheet to calculate the balance due, principal payment, and interest payment for each period of a loan. The user inputs to the spreadsheet will be the loan amount, the number of payments per year, the number of years' payments are made, and the nominal interest rate. Make the fallowing analysis in a separate Excels sheets. a. Loan in the amount of $23,463 at 9.34% APR over 36,48 and 60 months. i) What is the total interest paid for each number of payments. ii) Compare the options and discuss pros and cons for each option. b. Loan in the amount of $189,500 at 4.9% APR over 15,20 and 30 years. iii) What is the total interest paid for each number of payments. iv) Compare the options and discuss pros and cons for each option.
Develop a general-purpose Excel spreadsheet to calculate the balance due, principal payment, and interest payment for each period of a loan. The user inputs to the spreadsheet will be the loan amount, the number of payments per year, the number of years' payments are made, and the nominal interest rate. Make the fallowing analysis in a separate Excels sheets. a. Loan in the amount of $23,463 at 9.34% APR over 36,48 and 60 months. i) What is the total interest paid for each number of payments. ii) Compare the options and discuss pros and cons for each option. b. Loan in the amount of $189,500 at 4.9% APR over 15,20 and 30 years. iii) What is the total interest paid for each number of payments. iv) Compare the options and discuss pros and cons for each option.
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
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Transcribed Image Text:Develop a general-purpose Excel spreadsheet to calculate the balance due, principal payment, and
interest payment for each period of a loan. The user inputs to the spreadsheet will be the loan amount,
the number of payments per year, the number of years' payments are made, and the nominal interest
rate.
Make the fallowing analysis in a separate Excels sheets.
a. Loan in the amount of $23,463 at 9.34% APR over 36,48 and 60 months.
i) What is the total interest paid for each number of payments.
ii) Compare the options and discuss pros and cons for each option.
b. Loan in the amount of $189,500 at 4.9% APR over 15,20 and 30 years.
iii) What is the total interest paid for each number of payments.
iv) Compare the options and discuss pros and cons for each option.
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