Example 1: Complete the first month's charges and find the balance for Month 2. The APR is 15.99% with a minimum payment of 5%. The carry-over balance is $500.

Student Answer:

Month	Carry-Over Balance	Finance Charge	New Balance	Minimum Payment
1	$500	$6.66	$506.66	$25.33
2	$474.67	XXXXXXXX	XXXXXXX	XXXXXXXXX

Example 2: What exact excel formula is needed to find the monthly payment for a house that costs $90,000? The APR is 4.5% for a 30-year loan.

Student Answer:

=PMT(4.5/12,30*12,-90000)

Example 3: Using Excel, what formula is needed to find the total loan amount for a new car? You can spend $180 each month on payments and the loan rate is 5.72% for 4 years.

Student Answer:

=PV(.0572/12,4/12,-180)