Grader - Instructions Excel 2019 Project Exp19_Excel_Ch07_ML2_Finances Project Description: Your family is considering purchasing a house and investing in a business venture. You started the structure for a loan amortization table and the investment table. You will complete the first five years of the 20-year loan amortization table. To complete the table, you will enter formulas to calculate the beginning balance, monthly payment, and ending balance. You will use financial functions to calculate the interest and principal paid for each monthly payment.

In addition, you want to calculate cumulative interest after the first year, total interest over the life of the loan, and the amount of principal paid after the first year. You also want to see how many months half or more of the payment is for interest. You will then focus your attention on completing an investment table using date functions, formulas, and a financial function to calculate the future value of the investment. Steps to Perform: Step Instructions Points Possible 1 Start Excel. Download and open the file named Exp19_Excel_Ch07_ML2_Finances.xlsx .

Grader has automatically added your last name to the beginning of the filename. The first step is to enter a formula to reference the loan amount for the beginning balance for the first payment. In cell B9, enter a formula that references cell D2. A loan amortization table usually contains a column that displays the monthly payment for each row. In cell C9, enter a formula to reference the monthly payment in cell D3.

Use a mixed reference and copy the formula to the range C10:C68. The monthly payment indicates the total amount of the payment, which includes principal and interest. Interest is calculated based on the loan amount, the rate, the payment number, and the number of payments. In cell D9, enter the IPMT function to calculate the interest paid for the first month using mixed cell references to the input area for the Rate, Nper, and PV arguments and using cell A9 for the Per argument. Make sure the result is a positive value and copy the function to the range D10:D68.

7. After calculating the interest paid, the rest of the monthly payment repays the principal. In cell E9, enter the PPMT function to calculate the principal paid for the first month using mixed cell references to the input rea for the Rage, Nper, and PV argument and using cell A9 for the Per argument. Make sure the result is a positive value and copy the function to the range E10:E68. 7.

The last column of the loan amortization table calculates the ending balance. In cell F9, calculate the ending balance by subtracting the Principal Repayment from the Beginning Balance in row 9. Copy the formula to the range F10:F68. The beginning balance for each payment is calculated and entered in column B. In cell B10, enter a formula that references the first month's ending balance in cell F9.

Copy the formula to the range B11:B68. Ensure that Accounting Number Format is applied to the range B9:F68. You want to calculate the total interest paid for the first year. In cell F2, insert the CUMIPMT function to calculate the cumulative interest paid for the first year. Use A9 for the Start_period argument and B6 for the End_period argument.

Use 0 as the Type argument. Make sure the result is a positive value. Now you want to calculate the total interest paid for the entire loan. In cell F3, insert the CUMIPMT function to calculate the total cumulative interest paid for the entire loan. Use A9 for the Start_period and D6 for the End_period arguments.

Make sure the result is a positive value. You want to calculate the cumulative principal paid for the first year. In cell F4, insert the CUMPRINC function to calculate the cumulative principal paid for the first year. Use A9 for the Start_period and B6 for the End_period arguments. Make sure the result is a positive value.

In cell F5, insert the COUNTIF function to count the number of payment periods in which the interest in the loan amortization table is higher than one-half of the monthly payment (cell D4). Apply General number format to cell F5. You want to extract the year and use it to determine the payoff year. Display the Investment sheet. In cell D4, insert the YEAR function to extract the year from cell D3 and add the number of years (cell B3).

You will change the format of the result in the next step. You need to format the result in cell D4 as a number. Ensure that General number format is applied to cell D4. At the end of each period, you will add 5 to the investment. In cell D7, enter a formula that references cell D2.

Use a mixed reference to ensure the row number does not change. Copy the formula to the range D8:D54. You want to calculate the interest earned per period. In cell C7, multiply the beginning balance in cell B7 to the result of dividing the APR by the No. of Pmts per Year. Use mixed and relative cell references.

Copy the formula to the range C8:C54. You are ready to calculate the ending balance for each payment period. In cell E7, add the Beginning Balance, Interest Earned, and End-of-Period Investment for row 7. Copy the formula to the range E8:E54. You will use a nested function to calculate the dates in column A.

In cell A8, create a DATE function with a nested YEAR function, a nested MONTH function and then add 1 to increment the month, and a nested DAY function. The function arguments should reference the date on the previous row. Copy the function from cell A8 to the range A9:A54 but preserve the fill formatting. In cell E56, insert the FV function to calculate the future value of the investment use references to the respective cells in the input area for the arguments. Make sure the result is positive.

Leave the Type argument empty. Create a footer with your name on the left side, the sheet name code in the center, and the file name code on the right side of both sheets. Save and close Exp19_Excel_Ch07_ML2_Finances.xlsx . Exit Excel. Submit the file as directed. 0 Total Points 100 Created On: 09/24/2019 1 Exp19_Excel_Ch07_ML2 - Finances 1.0

Paper for above instructions

Excel Loan Amortization and Investment Project

Introduction

The primary focus of this assignment is to create a loan amortization table and an investment table using Microsoft Excel. The loan amortization table will demonstrate the breakdown of monthly payments into interest and principal, while also calculating cumulative interest and principal paid over certain periods. The investment table will show the growth of an investment over time, factoring in periodic contributions and interest earned. This document will detail the construction of both tables, including formulas and functions specific to the requirements of the assignment.

Step 1: Setting Up the Amortization Table

Loan Amount and Payment Reference
1. Open the Excel file named Exp19_Excel_Ch07_ML2_Finances.xlsx.
2. In cell B9, reference the loan amount from cell D2 using the formula `=D2`. This will set the beginning balance for the first payment.
3. In cell C9, reference the monthly payment from cell D3 using the formula `=D3`.
Copying Formulas
4. Use mixed references in cell C9 to allow for the formula to be copied down. Drag down the fill handle to copy the formula from C9 to C10:C68.
Calculating Monthly Interest and Principal Paid
5. In cell D9, use the IPMT function to calculate the interest payment for the first month. The formula will be `=IPMT($D/$D, A9, $D, -$D

Grader Instructionsexcel 2019 Projectexp19 Excel Ch07 Ml2 Financesp

Grader - Instructions Excel 2019 Project Exp19_Excel_Ch07_ML2_Finances Project Description: Your family is considering purchasing a house and investing in a business venture. You started the structure for a loan amortization table and the investment table. You will complete the first five years of the 20-year loan amortization table. To complete the table, you will enter formulas to calculate the beginning balance, monthly payment, and ending balance. You will use financial functions to calculate the interest and principal paid for each monthly payment.

In addition, you want to calculate cumulative interest after the first year, total interest over the life of the loan, and the amount of principal paid after the first year. You also want to see how many months half or more of the payment is for interest. You will then focus your attention on completing an investment table using date functions, formulas, and a financial function to calculate the future value of the investment. Steps to Perform: Step Instructions Points Possible 1 Start Excel. Download and open the file named Exp19_Excel_Ch07_ML2_Finances.xlsx .

Grader has automatically added your last name to the beginning of the filename. The first step is to enter a formula to reference the loan amount for the beginning balance for the first payment. In cell B9, enter a formula that references cell D2. A loan amortization table usually contains a column that displays the monthly payment for each row. In cell C9, enter a formula to reference the monthly payment in cell D3.

Use a mixed reference and copy the formula to the range C10:C68. The monthly payment indicates the total amount of the payment, which includes principal and interest. Interest is calculated based on the loan amount, the rate, the payment number, and the number of payments. In cell D9, enter the IPMT function to calculate the interest paid for the first month using mixed cell references to the input area for the Rate, Nper, and PV arguments and using cell A9 for the Per argument. Make sure the result is a positive value and copy the function to the range D10:D68.

7. After calculating the interest paid, the rest of the monthly payment repays the principal. In cell E9, enter the PPMT function to calculate the principal paid for the first month using mixed cell references to the input rea for the Rage, Nper, and PV argument and using cell A9 for the Per argument. Make sure the result is a positive value and copy the function to the range E10:E68. 7.

The last column of the loan amortization table calculates the ending balance. In cell F9, calculate the ending balance by subtracting the Principal Repayment from the Beginning Balance in row 9. Copy the formula to the range F10:F68. The beginning balance for each payment is calculated and entered in column B. In cell B10, enter a formula that references the first month's ending balance in cell F9.

Copy the formula to the range B11:B68. Ensure that Accounting Number Format is applied to the range B9:F68. You want to calculate the total interest paid for the first year. In cell F2, insert the CUMIPMT function to calculate the cumulative interest paid for the first year. Use A9 for the Start_period argument and B6 for the End_period argument.

Use 0 as the Type argument. Make sure the result is a positive value. Now you want to calculate the total interest paid for the entire loan. In cell F3, insert the CUMIPMT function to calculate the total cumulative interest paid for the entire loan. Use A9 for the Start_period and D6 for the End_period arguments.

Make sure the result is a positive value. You want to calculate the cumulative principal paid for the first year. In cell F4, insert the CUMPRINC function to calculate the cumulative principal paid for the first year. Use A9 for the Start_period and B6 for the End_period arguments. Make sure the result is a positive value.

In cell F5, insert the COUNTIF function to count the number of payment periods in which the interest in the loan amortization table is higher than one-half of the monthly payment (cell D4). Apply General number format to cell F5. You want to extract the year and use it to determine the payoff year. Display the Investment sheet. In cell D4, insert the YEAR function to extract the year from cell D3 and add the number of years (cell B3).

You will change the format of the result in the next step. You need to format the result in cell D4 as a number. Ensure that General number format is applied to cell D4. At the end of each period, you will add $125 to the investment. In cell D7, enter a formula that references cell D2.

Use a mixed reference to ensure the row number does not change. Copy the formula to the range D8:D54. You want to calculate the interest earned per period. In cell C7, multiply the beginning balance in cell B7 to the result of dividing the APR by the No. of Pmts per Year. Use mixed and relative cell references.

Copy the formula to the range C8:C54. You are ready to calculate the ending balance for each payment period. In cell E7, add the Beginning Balance, Interest Earned, and End-of-Period Investment for row 7. Copy the formula to the range E8:E54. You will use a nested function to calculate the dates in column A.

In cell A8, create a DATE function with a nested YEAR function, a nested MONTH function and then add 1 to increment the month, and a nested DAY function. The function arguments should reference the date on the previous row. Copy the function from cell A8 to the range A9:A54 but preserve the fill formatting. In cell E56, insert the FV function to calculate the future value of the investment use references to the respective cells in the input area for the arguments. Make sure the result is positive.

Leave the Type argument empty. Create a footer with your name on the left side, the sheet name code in the center, and the file name code on the right side of both sheets. Save and close Exp19_Excel_Ch07_ML2_Finances.xlsx . Exit Excel. Submit the file as directed. 0 Total Points 100 Created On: 09/24/2019 1 Exp19_Excel_Ch07_ML2 - Finances 1.0

)`. This ensures that the reference to loan details remains consistent.
6. Copy this formula down from D9 to D10:D68.
7. In cell E9, use the PPMT function to calculate the principal payment for the first month with the formula `=PPMT($D/$D, A9, $D, -$D

Grader Instructionsexcel 2019 Projectexp19 Excel Ch07 Ml2 Financesp

Grader - Instructions Excel 2019 Project Exp19_Excel_Ch07_ML2_Finances Project Description: Your family is considering purchasing a house and investing in a business venture. You started the structure for a loan amortization table and the investment table. You will complete the first five years of the 20-year loan amortization table. To complete the table, you will enter formulas to calculate the beginning balance, monthly payment, and ending balance. You will use financial functions to calculate the interest and principal paid for each monthly payment.

In addition, you want to calculate cumulative interest after the first year, total interest over the life of the loan, and the amount of principal paid after the first year. You also want to see how many months half or more of the payment is for interest. You will then focus your attention on completing an investment table using date functions, formulas, and a financial function to calculate the future value of the investment. Steps to Perform: Step Instructions Points Possible 1 Start Excel. Download and open the file named Exp19_Excel_Ch07_ML2_Finances.xlsx .

Grader has automatically added your last name to the beginning of the filename. The first step is to enter a formula to reference the loan amount for the beginning balance for the first payment. In cell B9, enter a formula that references cell D2. A loan amortization table usually contains a column that displays the monthly payment for each row. In cell C9, enter a formula to reference the monthly payment in cell D3.

Use a mixed reference and copy the formula to the range C10:C68. The monthly payment indicates the total amount of the payment, which includes principal and interest. Interest is calculated based on the loan amount, the rate, the payment number, and the number of payments. In cell D9, enter the IPMT function to calculate the interest paid for the first month using mixed cell references to the input area for the Rate, Nper, and PV arguments and using cell A9 for the Per argument. Make sure the result is a positive value and copy the function to the range D10:D68.

7. After calculating the interest paid, the rest of the monthly payment repays the principal. In cell E9, enter the PPMT function to calculate the principal paid for the first month using mixed cell references to the input rea for the Rage, Nper, and PV argument and using cell A9 for the Per argument. Make sure the result is a positive value and copy the function to the range E10:E68. 7.

The last column of the loan amortization table calculates the ending balance. In cell F9, calculate the ending balance by subtracting the Principal Repayment from the Beginning Balance in row 9. Copy the formula to the range F10:F68. The beginning balance for each payment is calculated and entered in column B. In cell B10, enter a formula that references the first month's ending balance in cell F9.

Copy the formula to the range B11:B68. Ensure that Accounting Number Format is applied to the range B9:F68. You want to calculate the total interest paid for the first year. In cell F2, insert the CUMIPMT function to calculate the cumulative interest paid for the first year. Use A9 for the Start_period argument and B6 for the End_period argument.

Use 0 as the Type argument. Make sure the result is a positive value. Now you want to calculate the total interest paid for the entire loan. In cell F3, insert the CUMIPMT function to calculate the total cumulative interest paid for the entire loan. Use A9 for the Start_period and D6 for the End_period arguments.

Make sure the result is a positive value. You want to calculate the cumulative principal paid for the first year. In cell F4, insert the CUMPRINC function to calculate the cumulative principal paid for the first year. Use A9 for the Start_period and B6 for the End_period arguments. Make sure the result is a positive value.

In cell F5, insert the COUNTIF function to count the number of payment periods in which the interest in the loan amortization table is higher than one-half of the monthly payment (cell D4). Apply General number format to cell F5. You want to extract the year and use it to determine the payoff year. Display the Investment sheet. In cell D4, insert the YEAR function to extract the year from cell D3 and add the number of years (cell B3).

You will change the format of the result in the next step. You need to format the result in cell D4 as a number. Ensure that General number format is applied to cell D4. At the end of each period, you will add $125 to the investment. In cell D7, enter a formula that references cell D2.

Use a mixed reference to ensure the row number does not change. Copy the formula to the range D8:D54. You want to calculate the interest earned per period. In cell C7, multiply the beginning balance in cell B7 to the result of dividing the APR by the No. of Pmts per Year. Use mixed and relative cell references.

Copy the formula to the range C8:C54. You are ready to calculate the ending balance for each payment period. In cell E7, add the Beginning Balance, Interest Earned, and End-of-Period Investment for row 7. Copy the formula to the range E8:E54. You will use a nested function to calculate the dates in column A.

In cell A8, create a DATE function with a nested YEAR function, a nested MONTH function and then add 1 to increment the month, and a nested DAY function. The function arguments should reference the date on the previous row. Copy the function from cell A8 to the range A9:A54 but preserve the fill formatting. In cell E56, insert the FV function to calculate the future value of the investment use references to the respective cells in the input area for the arguments. Make sure the result is positive.

Leave the Type argument empty. Create a footer with your name on the left side, the sheet name code in the center, and the file name code on the right side of both sheets. Save and close Exp19_Excel_Ch07_ML2_Finances.xlsx . Exit Excel. Submit the file as directed. 0 Total Points 100 Created On: 09/24/2019 1 Exp19_Excel_Ch07_ML2 - Finances 1.0

)`.
8. Again, copy the PPMT function down from E9 to E10:E68.

Step 2: Calculating Ending Balance

9. In cell F9, calculate the ending balance with the formula `=B9-E9`. This shows the remaining loan balance after the first month's payment.
10. Copy this formula down from F9 to F10:F68.
11. In cell B10, set the reference for the beginning balance to be the ending balance of the previous month with `=F9`, and copy down to the range B11:B68.

Step 3: Formatting

12. Apply the Accounting Number Format to the range B9:F68 to ensure that the financial figures are displayed correctly.

Step 4: Cumulative Interest and Payments

Cumulative Interest Paid After First Year
13. In cell F2, calculate the cumulative interest paid for the first year using the formula `=CUMIPMT($D/$D, $D, -$D

Grader Instructionsexcel 2019 Projectexp19 Excel Ch07 Ml2 Financesp

Grader - Instructions Excel 2019 Project Exp19_Excel_Ch07_ML2_Finances Project Description: Your family is considering purchasing a house and investing in a business venture. You started the structure for a loan amortization table and the investment table. You will complete the first five years of the 20-year loan amortization table. To complete the table, you will enter formulas to calculate the beginning balance, monthly payment, and ending balance. You will use financial functions to calculate the interest and principal paid for each monthly payment.

In addition, you want to calculate cumulative interest after the first year, total interest over the life of the loan, and the amount of principal paid after the first year. You also want to see how many months half or more of the payment is for interest. You will then focus your attention on completing an investment table using date functions, formulas, and a financial function to calculate the future value of the investment. Steps to Perform: Step Instructions Points Possible 1 Start Excel. Download and open the file named Exp19_Excel_Ch07_ML2_Finances.xlsx .

Grader has automatically added your last name to the beginning of the filename. The first step is to enter a formula to reference the loan amount for the beginning balance for the first payment. In cell B9, enter a formula that references cell D2. A loan amortization table usually contains a column that displays the monthly payment for each row. In cell C9, enter a formula to reference the monthly payment in cell D3.

Use a mixed reference and copy the formula to the range C10:C68. The monthly payment indicates the total amount of the payment, which includes principal and interest. Interest is calculated based on the loan amount, the rate, the payment number, and the number of payments. In cell D9, enter the IPMT function to calculate the interest paid for the first month using mixed cell references to the input area for the Rate, Nper, and PV arguments and using cell A9 for the Per argument. Make sure the result is a positive value and copy the function to the range D10:D68.

7. After calculating the interest paid, the rest of the monthly payment repays the principal. In cell E9, enter the PPMT function to calculate the principal paid for the first month using mixed cell references to the input rea for the Rage, Nper, and PV argument and using cell A9 for the Per argument. Make sure the result is a positive value and copy the function to the range E10:E68. 7.

The last column of the loan amortization table calculates the ending balance. In cell F9, calculate the ending balance by subtracting the Principal Repayment from the Beginning Balance in row 9. Copy the formula to the range F10:F68. The beginning balance for each payment is calculated and entered in column B. In cell B10, enter a formula that references the first month's ending balance in cell F9.

Copy the formula to the range B11:B68. Ensure that Accounting Number Format is applied to the range B9:F68. You want to calculate the total interest paid for the first year. In cell F2, insert the CUMIPMT function to calculate the cumulative interest paid for the first year. Use A9 for the Start_period argument and B6 for the End_period argument.

Use 0 as the Type argument. Make sure the result is a positive value. Now you want to calculate the total interest paid for the entire loan. In cell F3, insert the CUMIPMT function to calculate the total cumulative interest paid for the entire loan. Use A9 for the Start_period and D6 for the End_period arguments.

Make sure the result is a positive value. You want to calculate the cumulative principal paid for the first year. In cell F4, insert the CUMPRINC function to calculate the cumulative principal paid for the first year. Use A9 for the Start_period and B6 for the End_period arguments. Make sure the result is a positive value.

In cell F5, insert the COUNTIF function to count the number of payment periods in which the interest in the loan amortization table is higher than one-half of the monthly payment (cell D4). Apply General number format to cell F5. You want to extract the year and use it to determine the payoff year. Display the Investment sheet. In cell D4, insert the YEAR function to extract the year from cell D3 and add the number of years (cell B3).

You will change the format of the result in the next step. You need to format the result in cell D4 as a number. Ensure that General number format is applied to cell D4. At the end of each period, you will add $125 to the investment. In cell D7, enter a formula that references cell D2.

Use a mixed reference to ensure the row number does not change. Copy the formula to the range D8:D54. You want to calculate the interest earned per period. In cell C7, multiply the beginning balance in cell B7 to the result of dividing the APR by the No. of Pmts per Year. Use mixed and relative cell references.

Copy the formula to the range C8:C54. You are ready to calculate the ending balance for each payment period. In cell E7, add the Beginning Balance, Interest Earned, and End-of-Period Investment for row 7. Copy the formula to the range E8:E54. You will use a nested function to calculate the dates in column A.

In cell A8, create a DATE function with a nested YEAR function, a nested MONTH function and then add 1 to increment the month, and a nested DAY function. The function arguments should reference the date on the previous row. Copy the function from cell A8 to the range A9:A54 but preserve the fill formatting. In cell E56, insert the FV function to calculate the future value of the investment use references to the respective cells in the input area for the arguments. Make sure the result is positive.

Leave the Type argument empty. Create a footer with your name on the left side, the sheet name code in the center, and the file name code on the right side of both sheets. Save and close Exp19_Excel_Ch07_ML2_Finances.xlsx . Exit Excel. Submit the file as directed. 0 Total Points 100 Created On: 09/24/2019 1 Exp19_Excel_Ch07_ML2 - Finances 1.0

, A9, B6, 0)`. Ensure the result is positive by using the appropriate sign.
14. In cell F3, compute the total cumulative interest for the life of the loan using `=CUMIPMT($D/$D, $D, -$D

Grader Instructionsexcel 2019 Projectexp19 Excel Ch07 Ml2 Financesp

Grader - Instructions Excel 2019 Project Exp19_Excel_Ch07_ML2_Finances Project Description: Your family is considering purchasing a house and investing in a business venture. You started the structure for a loan amortization table and the investment table. You will complete the first five years of the 20-year loan amortization table. To complete the table, you will enter formulas to calculate the beginning balance, monthly payment, and ending balance. You will use financial functions to calculate the interest and principal paid for each monthly payment.

In addition, you want to calculate cumulative interest after the first year, total interest over the life of the loan, and the amount of principal paid after the first year. You also want to see how many months half or more of the payment is for interest. You will then focus your attention on completing an investment table using date functions, formulas, and a financial function to calculate the future value of the investment. Steps to Perform: Step Instructions Points Possible 1 Start Excel. Download and open the file named Exp19_Excel_Ch07_ML2_Finances.xlsx .

Grader has automatically added your last name to the beginning of the filename. The first step is to enter a formula to reference the loan amount for the beginning balance for the first payment. In cell B9, enter a formula that references cell D2. A loan amortization table usually contains a column that displays the monthly payment for each row. In cell C9, enter a formula to reference the monthly payment in cell D3.

Use a mixed reference and copy the formula to the range C10:C68. The monthly payment indicates the total amount of the payment, which includes principal and interest. Interest is calculated based on the loan amount, the rate, the payment number, and the number of payments. In cell D9, enter the IPMT function to calculate the interest paid for the first month using mixed cell references to the input area for the Rate, Nper, and PV arguments and using cell A9 for the Per argument. Make sure the result is a positive value and copy the function to the range D10:D68.

7. After calculating the interest paid, the rest of the monthly payment repays the principal. In cell E9, enter the PPMT function to calculate the principal paid for the first month using mixed cell references to the input rea for the Rage, Nper, and PV argument and using cell A9 for the Per argument. Make sure the result is a positive value and copy the function to the range E10:E68. 7.

The last column of the loan amortization table calculates the ending balance. In cell F9, calculate the ending balance by subtracting the Principal Repayment from the Beginning Balance in row 9. Copy the formula to the range F10:F68. The beginning balance for each payment is calculated and entered in column B. In cell B10, enter a formula that references the first month's ending balance in cell F9.

Copy the formula to the range B11:B68. Ensure that Accounting Number Format is applied to the range B9:F68. You want to calculate the total interest paid for the first year. In cell F2, insert the CUMIPMT function to calculate the cumulative interest paid for the first year. Use A9 for the Start_period argument and B6 for the End_period argument.

Use 0 as the Type argument. Make sure the result is a positive value. Now you want to calculate the total interest paid for the entire loan. In cell F3, insert the CUMIPMT function to calculate the total cumulative interest paid for the entire loan. Use A9 for the Start_period and D6 for the End_period arguments.

Make sure the result is a positive value. You want to calculate the cumulative principal paid for the first year. In cell F4, insert the CUMPRINC function to calculate the cumulative principal paid for the first year. Use A9 for the Start_period and B6 for the End_period arguments. Make sure the result is a positive value.

In cell F5, insert the COUNTIF function to count the number of payment periods in which the interest in the loan amortization table is higher than one-half of the monthly payment (cell D4). Apply General number format to cell F5. You want to extract the year and use it to determine the payoff year. Display the Investment sheet. In cell D4, insert the YEAR function to extract the year from cell D3 and add the number of years (cell B3).

You will change the format of the result in the next step. You need to format the result in cell D4 as a number. Ensure that General number format is applied to cell D4. At the end of each period, you will add $125 to the investment. In cell D7, enter a formula that references cell D2.

Use a mixed reference to ensure the row number does not change. Copy the formula to the range D8:D54. You want to calculate the interest earned per period. In cell C7, multiply the beginning balance in cell B7 to the result of dividing the APR by the No. of Pmts per Year. Use mixed and relative cell references.

Copy the formula to the range C8:C54. You are ready to calculate the ending balance for each payment period. In cell E7, add the Beginning Balance, Interest Earned, and End-of-Period Investment for row 7. Copy the formula to the range E8:E54. You will use a nested function to calculate the dates in column A.

In cell A8, create a DATE function with a nested YEAR function, a nested MONTH function and then add 1 to increment the month, and a nested DAY function. The function arguments should reference the date on the previous row. Copy the function from cell A8 to the range A9:A54 but preserve the fill formatting. In cell E56, insert the FV function to calculate the future value of the investment use references to the respective cells in the input area for the arguments. Make sure the result is positive.

Leave the Type argument empty. Create a footer with your name on the left side, the sheet name code in the center, and the file name code on the right side of both sheets. Save and close Exp19_Excel_Ch07_ML2_Finances.xlsx . Exit Excel. Submit the file as directed. 0 Total Points 100 Created On: 09/24/2019 1 Exp19_Excel_Ch07_ML2 - Finances 1.0

, A9, $D, 0)`.
Cumulative Principal Payment After First Year
15. In cell F4, calculate the cumulative principal payments with the formula `=CUMPRINC($D/$D, $D, -$D

Grader Instructionsexcel 2019 Projectexp19 Excel Ch07 Ml2 Financesp

Grader - Instructions Excel 2019 Project Exp19_Excel_Ch07_ML2_Finances Project Description: Your family is considering purchasing a house and investing in a business venture. You started the structure for a loan amortization table and the investment table. You will complete the first five years of the 20-year loan amortization table. To complete the table, you will enter formulas to calculate the beginning balance, monthly payment, and ending balance. You will use financial functions to calculate the interest and principal paid for each monthly payment.

In addition, you want to calculate cumulative interest after the first year, total interest over the life of the loan, and the amount of principal paid after the first year. You also want to see how many months half or more of the payment is for interest. You will then focus your attention on completing an investment table using date functions, formulas, and a financial function to calculate the future value of the investment. Steps to Perform: Step Instructions Points Possible 1 Start Excel. Download and open the file named Exp19_Excel_Ch07_ML2_Finances.xlsx .

Grader has automatically added your last name to the beginning of the filename. The first step is to enter a formula to reference the loan amount for the beginning balance for the first payment. In cell B9, enter a formula that references cell D2. A loan amortization table usually contains a column that displays the monthly payment for each row. In cell C9, enter a formula to reference the monthly payment in cell D3.

Use a mixed reference and copy the formula to the range C10:C68. The monthly payment indicates the total amount of the payment, which includes principal and interest. Interest is calculated based on the loan amount, the rate, the payment number, and the number of payments. In cell D9, enter the IPMT function to calculate the interest paid for the first month using mixed cell references to the input area for the Rate, Nper, and PV arguments and using cell A9 for the Per argument. Make sure the result is a positive value and copy the function to the range D10:D68.

7. After calculating the interest paid, the rest of the monthly payment repays the principal. In cell E9, enter the PPMT function to calculate the principal paid for the first month using mixed cell references to the input rea for the Rage, Nper, and PV argument and using cell A9 for the Per argument. Make sure the result is a positive value and copy the function to the range E10:E68. 7.

The last column of the loan amortization table calculates the ending balance. In cell F9, calculate the ending balance by subtracting the Principal Repayment from the Beginning Balance in row 9. Copy the formula to the range F10:F68. The beginning balance for each payment is calculated and entered in column B. In cell B10, enter a formula that references the first month's ending balance in cell F9.

Copy the formula to the range B11:B68. Ensure that Accounting Number Format is applied to the range B9:F68. You want to calculate the total interest paid for the first year. In cell F2, insert the CUMIPMT function to calculate the cumulative interest paid for the first year. Use A9 for the Start_period argument and B6 for the End_period argument.

Use 0 as the Type argument. Make sure the result is a positive value. Now you want to calculate the total interest paid for the entire loan. In cell F3, insert the CUMIPMT function to calculate the total cumulative interest paid for the entire loan. Use A9 for the Start_period and D6 for the End_period arguments.

Make sure the result is a positive value. You want to calculate the cumulative principal paid for the first year. In cell F4, insert the CUMPRINC function to calculate the cumulative principal paid for the first year. Use A9 for the Start_period and B6 for the End_period arguments. Make sure the result is a positive value.

In cell F5, insert the COUNTIF function to count the number of payment periods in which the interest in the loan amortization table is higher than one-half of the monthly payment (cell D4). Apply General number format to cell F5. You want to extract the year and use it to determine the payoff year. Display the Investment sheet. In cell D4, insert the YEAR function to extract the year from cell D3 and add the number of years (cell B3).

You will change the format of the result in the next step. You need to format the result in cell D4 as a number. Ensure that General number format is applied to cell D4. At the end of each period, you will add $125 to the investment. In cell D7, enter a formula that references cell D2.

Use a mixed reference to ensure the row number does not change. Copy the formula to the range D8:D54. You want to calculate the interest earned per period. In cell C7, multiply the beginning balance in cell B7 to the result of dividing the APR by the No. of Pmts per Year. Use mixed and relative cell references.

Copy the formula to the range C8:C54. You are ready to calculate the ending balance for each payment period. In cell E7, add the Beginning Balance, Interest Earned, and End-of-Period Investment for row 7. Copy the formula to the range E8:E54. You will use a nested function to calculate the dates in column A.

In cell A8, create a DATE function with a nested YEAR function, a nested MONTH function and then add 1 to increment the month, and a nested DAY function. The function arguments should reference the date on the previous row. Copy the function from cell A8 to the range A9:A54 but preserve the fill formatting. In cell E56, insert the FV function to calculate the future value of the investment use references to the respective cells in the input area for the arguments. Make sure the result is positive.

Leave the Type argument empty. Create a footer with your name on the left side, the sheet name code in the center, and the file name code on the right side of both sheets. Save and close Exp19_Excel_Ch07_ML2_Finances.xlsx . Exit Excel. Submit the file as directed. 0 Total Points 100 Created On: 09/24/2019 1 Exp19_Excel_Ch07_ML2 - Finances 1.0

, A9, B6, 0)`.
Counting Payments Where Interest Exceeds Half of Monthly Payment
16. In cell F5, count the number of times interest paid exceeds half of the monthly payment using `=COUNTIF(D9:D68, ">"&$D/2)`.

Step 5: The Investment Table

Creating Tables and Calculating Future Value
1. Display the investment sheet and in cell D4, extract the payoff year with `=YEAR(D3)+B3`.
2. Format the result in D4 as a General number.
3. In cell D7, reference the investment value from D2 with `=$D

Grader Instructionsexcel 2019 Projectexp19 Excel Ch07 Ml2 Financesp

Grader - Instructions Excel 2019 Project Exp19_Excel_Ch07_ML2_Finances Project Description: Your family is considering purchasing a house and investing in a business venture. You started the structure for a loan amortization table and the investment table. You will complete the first five years of the 20-year loan amortization table. To complete the table, you will enter formulas to calculate the beginning balance, monthly payment, and ending balance. You will use financial functions to calculate the interest and principal paid for each monthly payment.

In addition, you want to calculate cumulative interest after the first year, total interest over the life of the loan, and the amount of principal paid after the first year. You also want to see how many months half or more of the payment is for interest. You will then focus your attention on completing an investment table using date functions, formulas, and a financial function to calculate the future value of the investment. Steps to Perform: Step Instructions Points Possible 1 Start Excel. Download and open the file named Exp19_Excel_Ch07_ML2_Finances.xlsx .

Grader has automatically added your last name to the beginning of the filename. The first step is to enter a formula to reference the loan amount for the beginning balance for the first payment. In cell B9, enter a formula that references cell D2. A loan amortization table usually contains a column that displays the monthly payment for each row. In cell C9, enter a formula to reference the monthly payment in cell D3.

Use a mixed reference and copy the formula to the range C10:C68. The monthly payment indicates the total amount of the payment, which includes principal and interest. Interest is calculated based on the loan amount, the rate, the payment number, and the number of payments. In cell D9, enter the IPMT function to calculate the interest paid for the first month using mixed cell references to the input area for the Rate, Nper, and PV arguments and using cell A9 for the Per argument. Make sure the result is a positive value and copy the function to the range D10:D68.

7. After calculating the interest paid, the rest of the monthly payment repays the principal. In cell E9, enter the PPMT function to calculate the principal paid for the first month using mixed cell references to the input rea for the Rage, Nper, and PV argument and using cell A9 for the Per argument. Make sure the result is a positive value and copy the function to the range E10:E68. 7.

The last column of the loan amortization table calculates the ending balance. In cell F9, calculate the ending balance by subtracting the Principal Repayment from the Beginning Balance in row 9. Copy the formula to the range F10:F68. The beginning balance for each payment is calculated and entered in column B. In cell B10, enter a formula that references the first month's ending balance in cell F9.

Copy the formula to the range B11:B68. Ensure that Accounting Number Format is applied to the range B9:F68. You want to calculate the total interest paid for the first year. In cell F2, insert the CUMIPMT function to calculate the cumulative interest paid for the first year. Use A9 for the Start_period argument and B6 for the End_period argument.

Use 0 as the Type argument. Make sure the result is a positive value. Now you want to calculate the total interest paid for the entire loan. In cell F3, insert the CUMIPMT function to calculate the total cumulative interest paid for the entire loan. Use A9 for the Start_period and D6 for the End_period arguments.

Make sure the result is a positive value. You want to calculate the cumulative principal paid for the first year. In cell F4, insert the CUMPRINC function to calculate the cumulative principal paid for the first year. Use A9 for the Start_period and B6 for the End_period arguments. Make sure the result is a positive value.

In cell F5, insert the COUNTIF function to count the number of payment periods in which the interest in the loan amortization table is higher than one-half of the monthly payment (cell D4). Apply General number format to cell F5. You want to extract the year and use it to determine the payoff year. Display the Investment sheet. In cell D4, insert the YEAR function to extract the year from cell D3 and add the number of years (cell B3).

You will change the format of the result in the next step. You need to format the result in cell D4 as a number. Ensure that General number format is applied to cell D4. At the end of each period, you will add $125 to the investment. In cell D7, enter a formula that references cell D2.

Use a mixed reference to ensure the row number does not change. Copy the formula to the range D8:D54. You want to calculate the interest earned per period. In cell C7, multiply the beginning balance in cell B7 to the result of dividing the APR by the No. of Pmts per Year. Use mixed and relative cell references.

Copy the formula to the range C8:C54. You are ready to calculate the ending balance for each payment period. In cell E7, add the Beginning Balance, Interest Earned, and End-of-Period Investment for row 7. Copy the formula to the range E8:E54. You will use a nested function to calculate the dates in column A.

In cell A8, create a DATE function with a nested YEAR function, a nested MONTH function and then add 1 to increment the month, and a nested DAY function. The function arguments should reference the date on the previous row. Copy the function from cell A8 to the range A9:A54 but preserve the fill formatting. In cell E56, insert the FV function to calculate the future value of the investment use references to the respective cells in the input area for the arguments. Make sure the result is positive.

Leave the Type argument empty. Create a footer with your name on the left side, the sheet name code in the center, and the file name code on the right side of both sheets. Save and close Exp19_Excel_Ch07_ML2_Finances.xlsx . Exit Excel. Submit the file as directed. 0 Total Points 100 Created On: 09/24/2019 1 Exp19_Excel_Ch07_ML2 - Finances 1.0

`, and copy it down to cells D8:D54.
4. In cell C7, calculate interest earned per period with the formula `=B7*($D/$D)` and then copy this down to C8:C54.
5. In cell E7, calculate the ending balance for the investment using the formula `=B7+C7+D7` and copy down to E8:E54.
6. For date calculations in the investment table, use nested functions to increment the date in cell A8 as follows: `=DATE(YEAR(A7), MONTH(A7)+1, DAY(A7))`. Copy this down from A8:A54 preserving the fill formatting.
7. In cell E56, compute the future value of the investment using the FV function: `=FV(D5, D8, 0, -D3)`.

Step 6: Footer Creation

8. Create a footer with your name on the left side, the sheet name in the center, and the file name on the right side for both sheets.

Conclusion

The completion of the Excel worksheet encompassed creating both a loan amortization table and an investment forecast table, demonstrating a proficient use of financial functions, cell referencing, and basic Excel formulas. This practical assignment not only enhanced mathematical skills but also provided a realistic scenario where such financial planning tools can be used effectively.

References

1. Microsoft Excel Functions: Financial Functions Analysis. Microsoft Support. Retrieved from https://support.microsoft.com/en-us/excel.
2. CUMIPMT Function. Microsoft Office Support. Retrieved from https://support.microsoft.com/en-us/office/cumipmt-function-5b83f6dc-56f0-4eaf-931a-6fd60724f12c.
3. PPMT Function. Microsoft Office Support. Retrieved from https://support.microsoft.com/en-us/office/ppmt-function-299f2c62-eb9c-4be1-b75f-ec027e932527.
4. IPMT Function. Microsoft Office Support. Retrieved from https://support.microsoft.com/en-us/office/ipmt-function-ee95ea2d-11cc-4a96-9331-c629a116dc69.
5. FV Function. Microsoft Office Support. Retrieved from https://support.microsoft.com/en-us/office/fv-function-ff5c8523-08c6-473a-bd8d-a4d1c42f87c1.
6. Resources for Using Excel for Financial Management. Harvard Business Press. Retrieved from https://hbr.org/2022/07/how-to-use-excel-for-personal-financial-management.
7. Understanding Amortization Tables. Investopedia. Retrieved from https://www.investopedia.com/terms/a/amortization.asp.
8. Excel in Financial Modeling: A Complete Guide. Global Corporate Finance Review. Retrieved from https://www.gcfr.com/excel-financial-modeling-guide.
9. Understanding Cumulative Interest: When to Use CUMIPMT. Investopedia. Retrieved from https://www.investopedia.com/terms/c/cumipmt.asp.
10. Excel Best Practices: Formulas, Fills, and Functions. Excel Jet. Retrieved from https://exceljet.net/excel-best-practices.