Description
The assignment is below:
You will look at calculating a monthly payment for a loan. A simpler problem is to compute the amount a loan would cost you in one month.
Using information from an internet source, determine the current interest rate a credit card or loan. Suppose you borrow $1,000 (or spend $1,000) on a credit card. How much will you owe in one month? 6 months if you pay nothing for 6 months?
Compute the 6 month cost in two ways:
- Make 6 monthly computations. Enter these as formulas in a spreadsheet. (The goal here is really getting you to use spreadsheets and formulas for computations.)
- Use the formula, A= 1000*(1 + r)^(N) where N = the number of periods (6) and r = the periodic interest rate = APR/12, where APR is the annual percentage rate.
Here are a couple of options to research loans that do not require personal information.
Credit Karma:
https://www.creditkarma.com/shop/personal-loans#newloans
Top10PersonalLoans:
Principal
APR
Periods
Periodic rate
Part 1
Months
1000
17.89%
6
1.49083%
1
2
3
4
5
6
Part 2
Formula used
Beginning balance
$
1,000.00
$
1,014.91
$
1,030.04
$
1,045.40
$
1,060.98
$
1,076.80
$
1,092.85
interest
$ 14.91
$ 15.13
$ 15.36
$ 15.59
$ 15.82
$ 16.05
end balance
$ 1,014.91
$ 1,030.04
$ 1,045.40
$ 1,060.98
$ 1,076.80
$ 1,092.85
1
2
3
4
5
6
7
Addition
Subtraction
multiplication
division
powers
mean
median
$
1.50
1+2
4-Mar
7*5
3-Jun
3^4
3
-1
35
2
81
4
4
3
-1
35
2
81
35
In part 1 you should find the interest for each month by taking the beginning balance for that month times the
periodic interest rate. You should have 6 calculations.
Help with part 1
TV loan https://mediaplayer.pearsoncmg.com/assets/gtq1e_1_1_2_4_Flat_Screen_TV_loan
TV Loan Interest https://mediaplayer.pearsoncmg.com/assets/gtq1e_1_1_2_5_TV_loan_Interest
New balance https://mediaplayer.pearsoncmg.com/assets/gtq1e_1_1_2_6_TV_loan_New_Balance
Filling formulas https://mediaplayer.pearsoncmg.com/assets/gtq1e_1_1_2_7_TV_loan_Filling_Formulas
End Balance https://mediaplayer.pearsoncmg.com/assets/gtq1e_1_1_2_8_TV_loan_End_Balance
The attached document is a sample of a correct answer. Your document doesn’t have to be exactly like this. It
should address all the same calculations, but your design is up to you. I won’t provide a detailed document like this
for future DQs. You will need to start from a blank document on your computer. Using another student’s document
as your template is considered plagiarism.
Hello Class,
Throughout the course you will be working with different types of accounts and you will need to find rates for
them. You are welcome to use things like a credit card, loan, investment account you have. You can also research
your bank to see what rates they have to offer for things like credit card, savings account, or investment accounts.
Please don’t ever apply for an account. You should be able to find the You can also use the following websites.
They offer the going rates for different accounts.
1. https://www.nerdwallet.com/
2. https://www.creditkarma.com/shop/personal-loans#newloans
3. https://www.top10personalloans.com/
4. https://www.ncua.gov/analysis/Pages/industry/credit-union-bank-rates.aspx
Select the most recent month. It will produce a PDF document with a list of rates. Go to the account you are
interested in and use any of the 3 rates provided. Remember, these are rates which means they are percent. 2.15
on the document is really 2.15%
Purchase answer to see full
attachment
APR
Periods
Periodic rate
Part 1
Months
1000
17.89%
6
1.49083%
1
2
3
4
5
6
Part 2
Formula used
Beginning balance
$
1,000.00
$
1,014.91
$
1,030.04
$
1,045.40
$
1,060.98
$
1,076.80
$
1,092.85
interest
$ 14.91
$ 15.13
$ 15.36
$ 15.59
$ 15.82
$ 16.05
end balance
$ 1,014.91
$ 1,030.04
$ 1,045.40
$ 1,060.98
$ 1,076.80
$ 1,092.85
1
2
3
4
5
6
7
Addition
Subtraction
multiplication
division
powers
mean
median
$
1.50
1+2
4-Mar
7*5
3-Jun
3^4
3
-1
35
2
81
4
4
3
-1
35
2
81
35
In part 1 you should find the interest for each month by taking the beginning balance for that month times the
periodic interest rate. You should have 6 calculations.
Help with part 1
TV loan https://mediaplayer.pearsoncmg.com/assets/gtq1e_1_1_2_4_Flat_Screen_TV_loan
TV Loan Interest https://mediaplayer.pearsoncmg.com/assets/gtq1e_1_1_2_5_TV_loan_Interest
New balance https://mediaplayer.pearsoncmg.com/assets/gtq1e_1_1_2_6_TV_loan_New_Balance
Filling formulas https://mediaplayer.pearsoncmg.com/assets/gtq1e_1_1_2_7_TV_loan_Filling_Formulas
End Balance https://mediaplayer.pearsoncmg.com/assets/gtq1e_1_1_2_8_TV_loan_End_Balance
The attached document is a sample of a correct answer. Your document doesn’t have to be exactly like this. It
should address all the same calculations, but your design is up to you. I won’t provide a detailed document like this
for future DQs. You will need to start from a blank document on your computer. Using another student’s document
as your template is considered plagiarism.
Hello Class,
Throughout the course you will be working with different types of accounts and you will need to find rates for
them. You are welcome to use things like a credit card, loan, investment account you have. You can also research
your bank to see what rates they have to offer for things like credit card, savings account, or investment accounts.
Please don’t ever apply for an account. You should be able to find the You can also use the following websites.
They offer the going rates for different accounts.
1. https://www.nerdwallet.com/
2. https://www.creditkarma.com/shop/personal-loans#newloans
3. https://www.top10personalloans.com/
4. https://www.ncua.gov/analysis/Pages/industry/credit-union-bank-rates.aspx
Select the most recent month. It will produce a PDF document with a list of rates. Go to the account you are
interested in and use any of the 3 rates provided. Remember, these are rates which means they are percent. 2.15
on the document is really 2.15%
Purchase answer to see full
attachment
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