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Create a spreadsheet that determines the APR ( Annual Percentage Rate ) for an investment that pays monthly at an annual interest rate. The input
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 $ and respectively.
Suggested approach:
Enter the Principal on a cell say on B and the Annual Interest Rate as a percentage say on B
Create a column of Months say on column A with values from to
Create an adjacent column with the Balance calculated as follows:
For month the balance is the principal on B times plus the interest rate on B divided by because it is the interest rate for one month
For month the balance is the balance from month times plus the interest rate on B divided by
For subsequent months, repeat the formula for month Make sure you anchor the annual interest rate row correctly.
The APR is the value of the balance on month minus the initial balance on B 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
B What is the lowest annual interest rate that results in an APR that is higher than such annual interest rate?
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