1Why do you borrow?

Construct a spreadsheet that would indicate the profit rate and profit in dollars if you purchase given amount of items and you sell it, allowing the selling price to be variable for different amount of items and also to have some items not sold at all. Indicate that you may borrow some portion of the value you need for your purchase, that may vary from not borrowing anything to borrow all your capital. The selling price may be higher or lower of the purchased price.

Use the formula FORMULATEXT(#) to have the formulas visible to the person that views your work. Explain the meaning of the formulas used in clear and detailed manner.

Provide an explanation of how you can use the code you made in EXCEL and what conclusions you reach out.

2Amortization table for the cases that the same value is paid throughout the loan period and at the last period the total remaining balance is paid?

Construct a spreadsheet that a given value of a loan for twenty years paid annually and a given interest rate is paid fully in all alternatives in the same spreadsheet. Mark with a background color the cells that you used in order to drag the information completing the work. Specify the cells that you can use for all the alternatives you need.

Use the formula FORMULATEXT(#) to have the formulas visible to the person that views your work. Explain the meaning of the formulas used in clear and detailed manner.

3Refinancing or not?

In a period of changing financial environment as the current one, because we need to deal with inflationary pressures interest rates are increasing. If you have a loan such as the one your provided in the above case (2) and after five years interest rates may change we observe increases of the interest rates now, but in different time periods we experienced in the past we watched a decline in interest rates. How would you deal with the fact that five years after the loan interest rates change. Discuss the matter from the borrowers as well as from the financial institution point of you, provide your action in your excel sheet, explain the process of your analysis and the formulas used as well your conclusions and suggestions. Be specific

4Marketing a loan offer?

A financial institution may provide a lower interest rate for a loan from another financial institution while at the same time may change points (initial charges) to the value of the loan. Compare three such institutions with different rates and explore the range of the rates that the loan offering is profitable or not for the institution and the impact of the loan to the borrower. Explain how the cash flows of the loans are related to the internal rate of return and what this means in a laymans terms. Use the case that in two of these options the cash available to the borrower at the time the loan is received is the same, and have also the alternative that the amount of the principal received is the same. Explain what is happening, what formulas you use, and what you suggest.