Saeed has finally found a Business-Loan that he has been looking for since a long time....

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Saeed has finally found a Business-Loan that he has been looking for since a long time. He decided to take this loan and start his business. The bank offered him a flat 4.0% yearly interest rate irrespective of the duration and the amount he will take. Setup a worksheet that will show the monthly payments if you take a loan of SAR 500,000, 750,000, 1,000,000, 1,250,000 or 1,500,000 also to show the monthly payments if you want to pay it in 120, 132, 144, 156, 168, 180 or 192 months. In the "Business Loan" worksheet, answer all below questions: 1 In cell C7, compute the monthly interest rate for the house loan. 2 In cell C10, compute the monthly payment for the house loan of $1500,000, if he decides to take loan for 10 years. In range F4:L8, use two variable data table to find out the monthly payment you should pay based on different loan amount and time periods Terms. 3 4 5 10 6 In cell C14, find out the number of months required to pay back the loan of $500,000 (Cell C13) if you decided to pay $4500 (Cell C12) as monthly payment for the whole period. Make Scenarios for changing loan amount to 750,000, 1,000,000 and 1,500,000 USD and time period for reimbursement of loan to 144, 180 and 192 months respectively. Make summary out of these scenarios 1 1 3 1 3 1 0 1. 2 3 4 5 6 7 8 9 10 11 12 13 14 A B Initial Investment Loan Amount Annual Interest Rate Interest Rate (Monthly) Number of Months(NPER) PMT PV Bank offer Monthly Payment Number of Periods C ($50,000) $1,500,000 4.00% 120 $4,500.00 $500,000.00 D E $0.00 500,000 750,000 1,000,000 1,250,000 1,500,000 120 132 H 144 Time Periods 156 168 K 180 192 M N O P Q R Saeed has finally found a Business-Loan that he has been looking for since a long time. He decided to take this loan and start his business. The bank offered him a flat 4.0% yearly interest rate irrespective of the duration and the amount he will take. Setup a worksheet that will show the monthly payments if you take a loan of SAR 500,000, 750,000, 1,000,000, 1,250,000 or 1,500,000 also to show the monthly payments if you want to pay it in 120, 132, 144, 156, 168, 180 or 192 months. In the "Business Loan" worksheet, answer all below questions: 1 In cell C7, compute the monthly interest rate for the house loan. 2 In cell C10, compute the monthly payment for the house loan of $1500,000, if he decides to take loan for 10 years. In range F4:L8, use two variable data table to find out the monthly payment you should pay based on different loan amount and time periods Terms. 3 4 5 10 6 In cell C14, find out the number of months required to pay back the loan of $500,000 (Cell C13) if you decided to pay $4500 (Cell C12) as monthly payment for the whole period. Make Scenarios for changing loan amount to 750,000, 1,000,000 and 1,500,000 USD and time period for reimbursement of loan to 144, 180 and 192 months respectively. Make summary out of these scenarios 1 1 3 1 3 1 0 1. 2 3 4 5 6 7 8 9 10 11 12 13 14 A B Initial Investment Loan Amount Annual Interest Rate Interest Rate (Monthly) Number of Months(NPER) PMT PV Bank offer Monthly Payment Number of Periods C ($50,000) $1,500,000 4.00% 120 $4,500.00 $500,000.00 D E $0.00 500,000 750,000 1,000,000 1,250,000 1,500,000 120 132 H 144 Time Periods 156 168 K 180 192 M N O P Q R

Answer rating: 100% (QA)

To answer these questions we will need to do some calculations to determine the monthly payments for the different scenarios of a business loan that Saeed is considering The questions refer to the use ... View the full answer