12.3.4.

B 1 A Loan 2 Beginning-of-month repayment 3 Interest Rate, i 4 Months, n 5 Amount of Loan 24 $1,500 Recreate the above in excel. You seek to borrow $1,500 from a friend to cover your gym fees. You promise to repay the loan in 24 monthly repayments commencing today. If the effective annual interest (EAR) rate is 23.6% what is the amount of the monthly repayment? (answer do not include $ sign; show cents eg 100.00) B D E 1 n 10 2 Period Interest Rate, i 6.00% End of Beginning-of- period 3 Period period Balance interest Repayment Balance 4 11 $ 100,000 $ 6,000.00 -$13,586.80 $ 92,413 5 2$ 92,413$ 5,544.79 -$13,586.80 $ 84,371 6 31 $ 84,371 $ 5,062.27 - $13,586.80 $ 75,847 7 4 $ 75,847 $ 4,550.80 -$13,586.80 $ 66,811 8 50 $ 66,811$ 4,008.64 -$13,586.80 $ 57,233 9 6 $ 57,233$ 3,433.95 $13,586.80 $ 47,080 10 70 $ 47,080 $ 2,824.78 -$13,586.80 $ 36,318 11 8 $ 36,318$ 2,179.06 -$13,586.80 $ 24,910 12 9 $ 24,910 $ 1,494.60-$13,586.80 $ 12,818 13 100 $ 12,818$ 769.06 -$13,586.80 -$ 0 Refer to the above loan amortisation schedule. To calculate the amount of the principal repaid between end of period 4 and end of period 5, we could use the formula: Select one: a. = $B4-$E8 O b. =CUMINT (rate, nper,pv,start_period, end_period,type) C. =-CUMIPMT(rate,nper,pv,start_period,end_period,type) d. =E7-E8 1 2 3 4 Loan of $40,000 i, nominal rate per annum i'm, rate per month n (years) m nim, number of monthy repayments Loan End of month repayment 5 12.00% 1.00% 5.0 12 60.00 $40,000 $889.78 6 8 9 10 Total Interest paid between period 0 and period 5 Refer to the above screenshot. To calculate the total interest paid on the loan from period 0 to period 5, we could use the formula: Select one: a. =CUMINT (rate,nper,pv,start_period, end_period, type) O b. =B7-(5*B8) C. =-CUMIPMT((rate,nper, pv,start_period, end_period,type) d. =IPMT((rate,nper, pv,start_period, end_period,type) You are given the equation below. FV = ((1+ + 1)20 1)(1 +i) Which of the following statements is CORRECT? Select one: A. The equation will indicate the future value of an annuity of 10 payments, immediately after the 10th payment B. The equation will indicate the future value of an annuity due of 10 payments at the end of the 10th period. C. The equation will work where I make 10 annual payments commencing at the end of the first year if I wish to know the value at the beginning of the 10th year. D. None of the above are correct