Task 3A


Introduction


Mr Tim Budge and his fiancé Jennifer Lopez are looking at a handsome house and land package, But to do this they have to discuss finance with there local financier. They need to borrow a large sum of money from the bank to pay for the house.


There weekly income is $1050.00 there weekly outgoing is $450.00 also whilst keeping in mind they cannot pay back more than 85% that they earn that month.


Using this table they will find a plan which best suits them.


Results and Data


Throughout the duration of completing my Excel spreadsheet I found the following information.


Table 1


Financial Details


Weekly Income


$1,050.00


Weekly Outgoing


$450.00


Bank Balance


$15,000.00


Monthly Income


$4,550.00


Monthly Outgoing


$1,950.00


Max Repayment


$2,210.00


This is the Couples Financial details. The financier has to take this information into example when finding a repayment plan best for the couple.


Table 2


Interest Rate


Present Value


6%


$308,473.51


9%


$245,630.35


12%


$200,710.91


15%


$167,832.43


18%


$143,198.57


I got this information by using the PV (present Value) with the ABS (absolute) to help retrieve the right answer. The PV formula is PV (rate, nper, pmt) the rate is interest rate nper is the number of repayments and pmt is a payment made monthly.



Questions


1.$286568.3693 / =ABS(PV(9%/12,12*20,2578.33))


2.$225150.7822 / =ABS(PV(9%/12,12*20,2025.83))


3.Celeron 2.2 GHz CPU


256 MBs of Ram


LCD TFT 15” monitor


Optical Mouse


4.Microsoft Excel 2002


Microsoft Word 2002


Operating system Windows XP Professional 2002


5.PV function


ABS function


Merging Cells


Sum formula


Number Sequences


Conclusion


In conclusion I think this spreadsheet would come in very useful to people wanting to find a repayment plan which best suits them. Which h is very important in the repaying of the loan.