MGM272

Business Applications of Technology

Assignment / Project   Number  10

Financial Functions and Excel Tools

This project is about using some special features of MS-Excel.  One of those features is Excel's set of built-in financial functions.  Another of those features is the group of Excel Tools. 

For this project, you will create an MS-Excel Spreadsheet that contains a Loan Payment Schedule, also called an Amortization Table.  You will use either the financial functions or the GOAL SEEKER or SOLVER tool to help you construct the schedule.

You can click here to view an example table, but this example has no formulas.  In your own project, you should use formulas.  You should use an Initial Loan Balance of $7500, a time period of thirty-six months, and an appropriate monthly payment amount (which you will need to find) to obtain a zero balance after payment number 36.  You should use an interest rate of 3% per year converted to the appropriate monthly rate.  In order to get the data for your own schedule, you can click here and then save the data to your own spreadsheet file.

In class we will talk about how to use some of Excel's FINANCIAL FUNCTIONS, about the GOAL SEEKER and/or the SOLVER TOOL as an example of Excel Tools, and about constructing a Loan Payment (Amortization) Schedule.

You will need to turn in the following to the instructor on the date this assignment is due (check the class schedule):
  1) PRINTOUT #1:  A printed copy of your spreadsheet, showing a correct loan payment schedule.
  2) PRINTOUT #2:  A printed copy of your spreadsheet, showing showing the formulas in each cell.
  3) DISK FILE:  A copy of the disk file on which you have saved your spreadsheet. 
       The name of the file on the disk should be "payments.xls"
       The label on the disk should have YOUR NAME, and the words:
       ASSIGNMENT #10 -- LOAN PAYMENT SCHEDULE
  4) OTHER:  The above items are all that is required for this assignment.

You might want to check the instructor's remarks on how this project was graded the last time it was assigned by clicking here.