Assignment: amortize two loans

Attached Files: $9$ amortize$\_$two$\_$loans$\_$template.xlsx $(8\mathrm{.}67KB)$

amortize$\_$two$\_$loans$\_$tips.x$|$sx $(17\mathrm{.}723KB)$

Please use the mp$4$s to guide you in setting up the problem.

I added a template so you can start with that instead of a blank Excel spreadsheet.

After the end of the mp$4$s$,$ you will need to solve the last part of the problem yourself. You have two loans from the same bank. The bank will let you decide which loan to pay off first, etc., as long as you make your annual payment on time and in full.

The rest of the $mp4s$ are located below this $mp4.$

I encourage you to work in groups on this.

Please add another tab to the spreadsheet. Name the tab "group members" and list everyone in your group on the top of the page. If you choose to work by yourself, just list your name. You may choose your own group members. You may also change groups for every Excel project if you wish.

$*******$ I also added an Excel file with tips that will be helpful.

$1$ Your client needs to borrow money in order to support the

$2$ firm's cash flow needs over the next few years.

$3$ The loans available are the following:

$4$ Loan #$1$: int rate Ioan balance

$53\%10000$

$6$ Loan #$2$: int rate loan balance

$712\%$ no limit

$8$ Total amount needed to be borrowed.

$9$ Annual payment:

$10$ Note that the final payment will be less than this and will pay off

$11$ whatever is owed.

$12$ Your client should pay off the highest interest rate loan first, but note that

$14$ both loans will accumulate interest until paid in full.

The total payment can be divided between the two loans however your

$15$ client sees fit.

Sheet$1$

${\displaystyle \underset{}{\overset{2}{}}}+$

$$

$$

$$

$$

$$

R

$15$

Ready

$96$

Search