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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. 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: Delete the Loan_Payment_Calculator defined name. 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.] a. b. 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 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. 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: Delete the Loan_Payment_Calculator defined name. 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.] a. b. 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
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 with the questions, provide the steps and find the right work in the Excel spreadsheet.
**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 currently 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.] 2. In cell B7, calculate the loan amount by entering a formula without using a function that subtracts the Down_Payment from the Price. 3. 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.
Transcribed Image Text:**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 currently 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.] 2. In cell B7, calculate the loan amount by entering a formula without using a function that subtracts the Down_Payment from the Price. 3. 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.
**New House Mortgage Calculator** **Loan Payment Calculator:** - **Date:** 10/1/2021 - **Property:** Beecher Street - **Price:** $350,000 - **Down Payment:** $35,000 - **Loan Amount:** (calculation not visible) - **Rate:** 4.32% - **Term in Months:** 360 - **Monthly Payment:** (not specified) - **Total Interest:** (not specified) - **Total Cost:** (not specified) **Varying Interest Rates and Terms:** A table displays different interest rates and the corresponding number of months for loan terms: - **Interest Rates Range:** 4.00% to 4.96% - **Number of Months:** Categories for 180, 240, and 360 months, although only a few cells are filled. **Scenarios for Different Banks:** Table with interest rate scenarios for three banks - **Loan Amount for Bank 3:** $337,500 - **Annual Interest Rates:** - **Bank 1:** 4.40% - **Bank 2 & Bank 3:** 4.56% - **Monthly Interest Rates:** - **Bank 1:** 0.37% - **Bank 2 & Bank 3:** 0.38% - **Loan Period in Years:** - **Bank 1 & Bank 2:** 30 years - **Bank 3:** 20 years - **Loan Period in Months:** - **Bank 1 & Bank 2:** 360 months - **Bank 3:** 240 months - **Start Date:** - **Bank 1 & Bank 2:** 1/5/2022 - **Bank 3:** 1/5/2022 - **Monthly Payment:** ($1,500) for all banks - **Future Value:** - **Bank 1:** $0 - **Bank 2:** $1,151,573.10 - **Bank 3:** (not specified) **Current Rent vs. Monthly House Payment:** - **Current Rent:** $1,500 - **Monthly House Payment:** (not calculated yet) This display is likely part of an educational module to help users understand how different terms and interest rates affect mortgage payments and total costs
Transcribed Image Text:**New House Mortgage Calculator** **Loan Payment Calculator:** - **Date:** 10/1/2021 - **Property:** Beecher Street - **Price:** $350,000 - **Down Payment:** $35,000 - **Loan Amount:** (calculation not visible) - **Rate:** 4.32% - **Term in Months:** 360 - **Monthly Payment:** (not specified) - **Total Interest:** (not specified) - **Total Cost:** (not specified) **Varying Interest Rates and Terms:** A table displays different interest rates and the corresponding number of months for loan terms: - **Interest Rates Range:** 4.00% to 4.96% - **Number of Months:** Categories for 180, 240, and 360 months, although only a few cells are filled. **Scenarios for Different Banks:** Table with interest rate scenarios for three banks - **Loan Amount for Bank 3:** $337,500 - **Annual Interest Rates:** - **Bank 1:** 4.40% - **Bank 2 & Bank 3:** 4.56% - **Monthly Interest Rates:** - **Bank 1:** 0.37% - **Bank 2 & Bank 3:** 0.38% - **Loan Period in Years:** - **Bank 1 & Bank 2:** 30 years - **Bank 3:** 20 years - **Loan Period in Months:** - **Bank 1 & Bank 2:** 360 months - **Bank 3:** 240 months - **Start Date:** - **Bank 1 & Bank 2:** 1/5/2022 - **Bank 3:** 1/5/2022 - **Monthly Payment:** ($1,500) for all banks - **Future Value:** - **Bank 1:** $0 - **Bank 2:** $1,151,573.10 - **Bank 3:** (not specified) **Current Rent vs. Monthly House Payment:** - **Current Rent:** $1,500 - **Monthly House Payment:** (not calculated yet) This display is likely part of an educational module to help users understand how different terms and interest rates affect mortgage payments and total costs
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