Learning Objectives

Write formulas to compute financial data.

Use Microsoft Excel formulas to make financial decisions.

Apply financial calculations to authentic situations.

Week 4 Individual Assignment

Instructions:

You have decided to purchase an existing bakery and are comparing loan options. You will create a spreadsheet using the following instructions in order to analyze the data.

Create a spreadsheet and name it "W4 Loan Your Initials"

Entitle it "Loan Comparison" and merge and center across Row 1 (A-D)

Use Century Gothic Font, Size 12, Bold, Italicize

Create Headings in Cells B2 - D2: Loan 1, Loan 2, Loan 3

Use Arial Font, Size 12, Bold

Beginning in cell A3 and ending in cell A8, add the following categories:

Principal

Annual Interest Rate

Number of Monthly Payments

Monthly Payment

Interest

Total Payment

Use the following information

	Lender 1	Lender 2	Lender 3
Principal	100,000.00	103,000.00	99,000.00
Annual Interest Rate	4.13%	4.05%	3.70%
Number of Monthly Payments	360	400	320

Add formulas for the

Monthly Payment =PMT((Annual Interest rate/12),Number of monthly payments,-Principal,0)

Interest =IPMT(Annual Interest rate,1,Number of monthly payments,-Principal)

Total Payment =Principl+Interest

Analyze the data and select the loan you feel is most beneficial for your circumstances. Justify your response with a short paragraph.