Create a spreadsheet that determines the APR $($Annual Percentage Rate$)$ for an investment that pays monthly at an annual interest rate.

The input values are the Principal invested at the beginning of the period and the annual interest rate, for example $$100$ and $5\%$ respectively.

Suggested approach:

Enter the Principal on a cell $($say on B$2)$ and the Annual Interest Rate as a percentage $($say on B$3).$

Create a column of Months $($say on column A$)$ with values from $1$ to $12$

Create an adjacent column with the Balance calculated as follows:

For month $1,$ the balance is the principal on B$2$ times $1$ plus the interest rate on B$3$ divided by $12($because it is the interest rate for one month$)$

For month $2,$ the balance is the balance from month $1$ times $1$ plus the interest rate on B$3$ divided by $12.$

For subsequent months, repeat the formula for month $2.$ Make sure you anchor the annual interest rate row correctly.

The APR is the value of the balance on month $12$ minus the initial balance on B$2$ as a percentage.

Provide the spreadsheet containing your name, course code and date on the first row.

Also, at the end of the spreadsheet, copy the questions below and answer them, using full statements:

A$.$ What is the APR for annual interest rate that is the number of letters in your last name $($ex$.$ For Long, the annual interest rate is $4\%?$

B$.$ What is the lowest annual interest rate that results in an APR that is $1\%$ higher than such annual interest rate?