1. Given the following:

	A		B
1	Rate	2%	Interest or yield
2	Nper	10	Number of periods
3	pmt	-1000	Payment amount
4	[FV]	0	Future Value

Write a formula that use the PV function to determine the present value.

Answer Questions 210 using the following worksheet shown. Assume that you will place your answers in cells on the same worksheet.

	A			B
1	Home Price			90,000
2	Down Payment			10,000
3	Loan Amount
4	Financing %
5	Interest Rate (Yearly)			6.50%
6	Loan Term (Years)			30
7
8	Number of Payments
9	Monthly Payment
10	Total Interest Paid
11
12		Total Annual Payment

2. Write a formula to determine the loan amount.

3. Write a formula to determine the financing %.

4. Write a formula to determine the number of payments

5. Write of formula to determine the monthly payment amount

6. Write a formula to determine the total interest paid

7. Write a formula to determine the total annual payment.

8. Write a formula to determine the total payments.

9. Create a spreadsheet similar to the image with the proper formulas entered for B3, B4, B8, B9, B10, and B12

Use the following test data to make sure your formulas are correct.

Home Price 90,000 Down Payment 10,000 Loan Amount 80,000 Financing % 88.89% Interest Rate (Yearly) 6.50% Loan Term (Years) 30 Number of Payments 360 Monthly Payment 505.65 Total Interest Paid 102,035.59 Total Annual Payment 6,067.85 Total Payments 182,035.59

BONUS (20 points): 10. Create an amortization schedule that shows all 360 payments as follows:

Year Payment no. Starting Balance Interest Paid Principal Paid Total Payment Ending Balance

All cells should use a formula.