$2$

Case $1$: Payment and Rate Calculations

On Sheet$1,$ you need to perform the following calculations. The formula that calculates the

payment or rate must be entered in the specified cell. Additionally, the formula should contain all

necessary information such as interest rate or number of periods. You should not be referring to

another cell.

Calculation $1$

You have purchased a new car for $$47500.$ To get this price, you needed to use financing

provided by the car deal. The term of the loan is $8$ years at $4\mathrm{.}8\%$ with monthly payments.

What will the monthly payment be for this car?

Enter your formula in cell A$3.$

Calculation $2$

After purchasing a new house, you want a new TV and audio system. Unfortunately, you have

very poor credit and can$$t get financing through a normal back. So$,$ you finance it through a high

interest short$-$term lender.

The total cost of your new OLED TV and Sonos premium sound system is $$4600.$ The interest

rate is $15\mathrm{.}5\%$ and the payments are weekly for $6$ months $($assume half of a year$).$

What will the weekly payment be for the equipment?

Enter your formula in cell A$6.$

Calculation $3$

Your friend Sally is bragging about the great mortgage rate she got from her mortgage broker,

but she won$$t say what the rate is$.$

You know that the purchase price of the house was $$450,000$ and she$$s making monthly

payments of $$3000$ for $25$ years. What interest rate is Sally being charged?

Enter your formula in cell A$9.$

Calculation $4$

You have a bit of a gambling problem. After a string of losses, betting on just about anything

that moved, you owe Jeff your neighborhood bookie $$32,000.$

Jeff won$$t let you bet anymore, but he offers you a payment plan. After carefully considering that

you don$$t want Jeff to break your legs you agree to the payment plan.

On the $1$st and $15$th of each month, you$$ll pay Jeff $$750.$ You will do this for $3$ years. Today is the

first of the month and Jeff wants the first payment today.

What interest rate is Jeff charging you?

Enter your formula in cell A$12$