Section C: Excel Problem

INSTRUCTIONS FOR FORMATTING THE DOCUMENT:

Mrs$.$ Mary Saunders will finance her son's tuition at a University in Canada costing some $$90,000\mathrm{.}00$ for four years. She has to seek financing at one of the local banks $($CommonWealth Bank$).$ Mrs$.$ Saunders is seeking to find the best rate to fit her needs. A friend advises that she visits all of the major lending intuitions and create a Mortgage Amortization spread sheet to compare. See Diagram below.

The loan is priced at $$90,0000\mathrm{.}00.$ Calculate the monthly payments required over time, the Total Cost and Total Interest after the loan is paid off. The duration of the Loan is $4$ years, assuming a Start$\_$Time date on the first payment and the End$\_$Time is the last

$3$

Advanced Computer Applications

payment, find the total Interest paid to the banks $($use "CUMIPMT$)$ over the duration of the loan, record your result in Total Interest column.

The payments are expected at the end of each month. Calculate the monthly payment using the $\text{'}$PMT$\text{'}$ formula. Give your answers as positive values. Save the solution along with the show Formula $.$