This worksheet will compute the monthly value of an amortized loan for 36 months. This will be a worksheet in which the loan value or principal, interest rate, and monthly payment can be changed and the worksheet will automatically update. Within the worksheet there will be some absolute cell referencing that is needed and some relative cell referencing that is needed. You will need to determine which is appropriate.
In row five of this worksheet create cells labeled "Amount of Loan," "Interest Rate," and "Monthly Payment," with two columns between each label. Invent reasonable values to put in the three cells below each title as a starting place. These values are temporary values to help you see if your worksheet is working as you create it. For example, you may want to enter $5000 as the loan amount, .065 as the interest rate, and $150 as the monthly payment.
Leave two empty rows below the cells created in the prior step, then label four columns as "Month," "Current Principal," "Interest Due," and "New Principal."
Place the letters "a," "b," "c," and "d" in a column to the right of the amortization work. Use your worksheet to determine the following and put the answer next to the letter:
Explain this.
Amortisation of Car Loan | 27 April 2020 | ||||||
(As per the requirements of part 'd') | |||||||
Amount of loan (in $) | Interest rate (%) | Monthly payment($) | |||||
25,000.00 | 8% | 135.00 | |||||
(As per the requirements of part 'd') | |||||||
Month | Current principal (in $) | Interest due (in $) | New Principal (in $) | Questions | Answers (amount in $) | Remarks | |
1 | 25,000.00 | 166.67 | 25,031.67 | a | 9,296 | Amount due after 36 months, if the principal amount of loan is $15000, interest required to be paid is at 6% per annum and the monthly payment is $220. | |
2 | 25,031.67 | 166.88 | 25,063.54 | b | 798 | Monthy payment required to pay off the loan in 36 months when the principal amount to be repaid is $123,000 and the rate of interest is 7% per annum. | |
3 | 25,063.54 | 167.09 | 25,095.63 | c | 207 | Monthy payment required to pay off the loan in 36 months when the principal amount to be repaid is $7000 and the rate of interest is 4% per annum. | |
4 | 25,095.63 | 167.30 | 25,127.94 | d | 26,284 | The value of loan payable would have risen to $26283.63 as the interest to be paid per month has always been more than the monthly repayment of principal. | |
5 | 25,127.94 | 167.52 | 25,160.46 | ||||
6 | 25,160.46 | 167.74 | 25,193.19 | Difference between absolute and relative cell referencing; | |||
7 | 25,193.19 | 167.95 | 25,226.15 | There are mainly two types of cell references relative and absolute. The main difference between the two is that a relative cell reference move when you copy them, which means the cell refered does not remain constant, however an absolute cell reference does not move when copied, which means the cell refered would remain the same. An absolute cell reference is represented by a "dollar" sign in front of the cell reference. | |||
8 | 25,226.15 | 168.17 | 25,259.32 | ||||
9 | 25,259.32 | 168.40 | 25,292.72 | ||||
10 | 25,292.72 | 168.62 | 25,326.34 | ||||
11 | 25,326.34 | 168.84 | 25,360.18 | ||||
12 | 25,360.18 | 169.07 | 25,394.25 | ||||
13 | 25,394.25 | 169.29 | 25,428.54 | ||||
14 | 25,428.54 | 169.52 | 25,463.07 | ||||
15 | 25,463.07 | 169.75 | 25,497.82 | ||||
16 | 25,497.82 | 169.99 | 25,532.81 | ||||
17 | 25,532.81 | 170.22 | 25,568.02 | ||||
18 | 25,568.02 | 170.45 | 25,603.48 | ||||
19 | 25,603.48 | 170.69 | 25,639.17 | ||||
20 | 25,639.17 | 170.93 | 25,675.10 | ||||
21 | 25,675.10 | 171.17 | 25,711.26 | ||||
22 | 25,711.26 | 171.41 | 25,747.67 | ||||
23 | 25,747.67 | 171.65 | 25,784.32 | ||||
24 | 25,784.32 | 171.90 | 25,821.22 | ||||
25 | 25,821.22 | 172.14 | 25,858.36 | ||||
26 | 25,858.36 | 172.39 | 25,895.75 | ||||
27 | 25,895.75 | 172.64 | 25,933.39 | ||||
28 | 25,933.39 | 172.89 | 25,971.28 | ||||
29 | 25,971.28 | 173.14 | 26,009.42 | ||||
30 | 26,009.42 | 173.40 | 26,047.81 | ||||
31 | 26,047.81 | 173.65 | 26,086.47 | ||||
32 | 26,086.47 | 173.91 | 26,125.38 | ||||
33 | 26,125.38 | 174.17 | 26,164.54 | ||||
34 | 26,164.54 | 174.43 | 26,203.98 | ||||
35 | 26,203.98 | 174.69 | 26,243.67 | ||||
36 | 26,243.67 | 174.96 | 26,283.63 |
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