Ricardo and Miranda Ramos are considering whether to buy their first home, and ha spoken to three lenders about taking out a mortgage for the house purchase. They now pay $1,500 per month in rent and can pay up to $1,600 per month for a mortgage. Miranda has created an Excel spreadsheet to compare the terms of the mortgage. She asks you to help her complete the analysis of their loan options. Go to the Mortgage Calculator worksheet. The cells in the range B5:B7 have defined names, but one is incomplete and could be confusing." Cell A2 also has a defined name, which is unnecessary for a cell that will not be used in a formula. Update the defined names in the worksheet as follows: a. Delete the Loan Payment Calculator defined name. b. For cell B7, edit the defined name to use Loan_Amt as the name. [Mac Hint: Delete the existing defined name "Loan_Am" and add the new defined name.] In cell B7, calculate the loan amount by entering a formula without using a function that subtracts the Down Payment from the Price. Miranda also wants to use defined names in other calculations to help her interpret the formulas. In the range D3:D7, create defined names based on the values in the range C3:C7.
Ricardo and Miranda Ramos are considering whether to buy their first home, and ha spoken to three lenders about taking out a mortgage for the house purchase. They now pay $1,500 per month in rent and can pay up to $1,600 per month for a mortgage. Miranda has created an Excel spreadsheet to compare the terms of the mortgage. She asks you to help her complete the analysis of their loan options. Go to the Mortgage Calculator worksheet. The cells in the range B5:B7 have defined names, but one is incomplete and could be confusing." Cell A2 also has a defined name, which is unnecessary for a cell that will not be used in a formula. Update the defined names in the worksheet as follows: a. Delete the Loan Payment Calculator defined name. b. For cell B7, edit the defined name to use Loan_Amt as the name. [Mac Hint: Delete the existing defined name "Loan_Am" and add the new defined name.] In cell B7, calculate the loan amount by entering a formula without using a function that subtracts the Down Payment from the Price. Miranda also wants to use defined names in other calculations to help her interpret the formulas. In the range D3:D7, create defined names based on the values in the range C3:C7.
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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I need help to do those questions in Excel and find to do those problems correctly.
![Sure! Here’s the transcription of the text as it would appear on an educational website:
---
### Project Steps
1. **Ricardo and Miranda Ramos** are considering whether to buy their first home and have spoken to three lenders about taking out a mortgage for the house purchase. They now pay $1,500 per month in rent and can pay up to $1,600 per month for a mortgage. Miranda has created an Excel spreadsheet to compare the terms of the mortgage. She asks you to help her complete the analysis of their loan options.
2. Go to the **Mortgage Calculator** worksheet. The cells in the range B5:B7 have defined names, but one is incomplete and could be confusing. Cell A2 also has a defined name, which is unnecessary for a cell that will not be used in a formula.
Update the defined names in the worksheet as follows:
a. Delete the **Loan\_Payment** calculator defined name.
b. For cell B7, edit the defined name to use **Loan\_Amt** as the name. [Mac Hint: Delete the existing defined name "Loan\_Am" and add the new defined name.]
3. In cell B7, calculate the loan amount by entering a formula without using a function that subtracts the **Down\_Payment** from the **Price**.
4. Miranda also wants to use defined names in other calculations to help her interpret the formulas.
In the range D3:D7, create defined names based on the values in the range C3:C7.
---
This transcription provides clear instructions for students learning to work with Excel, focusing on managing defined names and performing financial calculations with spreadsheets.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb7b9bc12-9bec-475d-bc99-e13d2a9b76e2%2F1b91c818-b928-4f43-b0f8-108be931ffaf%2Fa0h49lj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Sure! Here’s the transcription of the text as it would appear on an educational website:
---
### Project Steps
1. **Ricardo and Miranda Ramos** are considering whether to buy their first home and have spoken to three lenders about taking out a mortgage for the house purchase. They now pay $1,500 per month in rent and can pay up to $1,600 per month for a mortgage. Miranda has created an Excel spreadsheet to compare the terms of the mortgage. She asks you to help her complete the analysis of their loan options.
2. Go to the **Mortgage Calculator** worksheet. The cells in the range B5:B7 have defined names, but one is incomplete and could be confusing. Cell A2 also has a defined name, which is unnecessary for a cell that will not be used in a formula.
Update the defined names in the worksheet as follows:
a. Delete the **Loan\_Payment** calculator defined name.
b. For cell B7, edit the defined name to use **Loan\_Amt** as the name. [Mac Hint: Delete the existing defined name "Loan\_Am" and add the new defined name.]
3. In cell B7, calculate the loan amount by entering a formula without using a function that subtracts the **Down\_Payment** from the **Price**.
4. Miranda also wants to use defined names in other calculations to help her interpret the formulas.
In the range D3:D7, create defined names based on the values in the range C3:C7.
---
This transcription provides clear instructions for students learning to work with Excel, focusing on managing defined names and performing financial calculations with spreadsheets.
Transcribed Image Text:The image shows an Excel spreadsheet titled "New House Mortgage Calculator." The spreadsheet is designed to calculate mortgage payments based on varying interest rates and loan terms. Here's a transcription and detailed explanation of its components:
### Main Sections:
1. **Property Information:**
- **Date:** 4/4/24
- **Property Address:** 1200 EDC Street
- **Price:** $0.00 (Example value)
- **Down Payment:** $0.00
- **Loan Amount:** $0.00
2. **Rate Information:**
- **Rate:** 0.042 (4.2%)
- **Term in Months:** 360 (30 years)
- **Monthly Payment:** Formula involving PMT function
- **Total Interest:** Result of formula for total interest (H5-D5-H5)
- **Total Term:** 15/15+15
3. **Scenarios Comparison:**
- Columns labeled as Bank 1, Bank 2, and Bank 3 offer different interest scenarios with associated rates, months, and potential loan payment outcomes.
### Detailed Section Descriptions:
- **Varying Interest Rates and Terms Table:**
- This section seems focused on comparing how different rates affect payments over a set number of months (360 months).
- Rates range from 0.042 to 0.048 in increments (e.g., 0.045).
- The formula `PMT(A12/12,$B$11,$E$7)` is used repeatedly, indicative of calculating monthly payments—using Excel’s `PMT` function.
- **Scenario Details:**
- Listed parameters for three banks, showing their interest rate, term in months, and resultant calculations.
- **Bank 1:**
- Interest Rate: 0.044
- Term: 30 years (360 months)
- Various outputs shown in Excel formula format (e.g., G13/G12)
- **Bank 2:**
- Interest Rate: 0.0456
- Similar term and calculation details.
- **Bank 3:**
- Higher interest rate at 0.0455
- Same formulaic approach as the others.
- **Outputs:**
- Likely calculated fields showing mortgage payment results based on the inputs for each scenario.
### Additional Notes:
- The spreadsheet appears set
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