37 H B 2 Problem 5-18 You have an outstanding student loan with required payments of $500 per month for the next four years. The interest rate on the loan is 9% APR (monthly). You are considering making an extra payment of $100 today (that is, you will pay an extra $100 that you are not required to pay). If you are required to continue to make payments of $500 per month until the loan is paid off, what is the amount of your final payment? What effective rate of return (expressed as an APR with monthly compounding) have you carned on the S1007 Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. S500 Original payment Years remaining APR Extra payment Periods per year 9 9% S100 12 10 19 12 1 Discount rute Periods remaining Loan balance Current balance after extra payment Amount left over it the payment is unchanged Effective rate of retum 0.75% 48 $20.092.39 $19.992.39 15 17 quirements 1. Start Excel - completed. 2. In cell D12, by using cell references, calculate the monthly rate (discount rate) (1 pt.). 3. In cell D13, by using cell references, calculate the number of periods remaining on the loan (1 pt.). 4. In cell D14, by using cell references and the function PV, calculate the amount that you owe on the loan (1 pt.). Note: The output of the expression or function you typed in this cell is expected as a positive number. 5. In cell D15, by using cell references, calculate the current balance after extra payment (1 pt.). Note: Refer to the amount that you owe from Step 4 in your calculations. 6. In cell 0416, by using cell references and the function FV, calculate the amount that will be left over if the last payment stays the same (1 pt.) Notes: 1. The output of the expression or function you typed in this cell is expected as a positive number. 2. Refer to the current balance after extra payment value from Steps in your calculations. 7. In cell D17, by using cell references, calculate the interest rate cared over the period (1 pt.). Note: Refer to the amount that will be left over from Step 6 in your calculations. 8. Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed