Chapter 4 Spreadsheet on the problem (C04)

Amortization table

2. The chart shows the total payment, pay to the interests of capital and the payment of the loan for 20 years, is displayed when you click on the tab called CHART at the bottom of the spreadsheet. To return to the worksheet, click the tab called C04 at the bottom of the sheet graphic work.

3. Start by organizing the worksheet by placing the line 21 at the top of the screen. This will allow you to simultaneously view the input data and amortization. Then place the cursor in a cell in the input data, enter new data and observe changes in the amortization table. Also, work the problem to a term of 20 years and interest rates of 3 and 25%, see chart and note the difference in the amount of payments and interest between the fertilizer and capital.

4. F25..F44 cells contain the present value of each annual payment discounted at the appropriate interest rate. By changing the interest rate, you can see what happens to each discounted payment. The sum of this range is equal to the original loan amount.

DATA ENTRY: KEY FINDINGS:

Loan amount 20,000 I pay 2,037.04
Interest rate 8.00%
Number of years twenty

Data generated by the model:

Amortization table:
crediting crediting Balance PV of
Year I pay interests capital payments
1 2,037.04 1,600.00 437.04 19562.96 1,886.15
2 2,037.04 1,565.04 472.01 19090.95 1,746.44
3 2,037.04 1,527.28 509.77 18581.18 1,617.07
4 2,037.04 1,486.49 550.55 18030.63 1,497.29
5 2,037.04 1,442.45 594.59 17436.04 1,386.38
6 2,037.04 1,394.88 642.16 16793.87 1,283.68
7 2,037.04 1,343.51 693.53 16100.34 1,188.60
8 2,037.04 1,288.03 749.02 15351.32 1,100.55
9 2,037.04 1,228.11 808.94 14542.39 1,019.03
10 2,037.04 1,163.39 873.65 13668.73 943.55
eleven 2,037.04 1,093.50 943.55 12725.19 873.65
12 2,037.04 1,018.01 1,019.03 11706.16 808.94
13 2,037.04 936.49 1,100.55 10605.61 749.02
14 2,037.04 848.45 1,188.60 9,417.01 693.53
fifteen 2,037.04 753.36 1,283.68 8,133.33 642.16
16 2,037.04 650.67 1,386.38 6,746.95 594.59
17 2,037.04 539.76 1,497.29 5,249.66 550.55
18 2,037.04 419.97 1,617.07 3,632.59 509.77
19 2,037.04 290.61 1,746.44 1,886.15 472.01
twenty 2,037.04 150.89 1,886.15 0.00 437.04
40740.88 20740.88 20,000.00 20,000.00

We have previously entered data in this file to the base case
each model, and these are designed for the analysis of preceding parts
of the problem. You should only enter the details of each of the parties
the remaining problem-we point out in each problem, the parties
to be performed using the spreadsheet. However, there are several
things to consider before entering the model:
1. The input data are entered in specific cells in the section
DATA ENTRY. When an input is changed, the model
DATA ENTRY. When an input is changed, the model
DATA ENTRY. When an input is changed, the model
DATA ENTRY. When an input is changed, the model
2. The key results are displayed on the right section
DATA ENTRY or immediately below it. This distribution allows you
modify an input and immediately see how the change affects the results
model. This is quite useful in a sensitivity analysis.
3. The input data that can be modified differ from those who should not
modify. The data that can be changed are highlighted in color (blue) to
Unlike other data are black.
4. All percentages must be entered as decimal. Monetary units
and other numbers should be entered without signs of pesos or dollars without commas.
5. For each model instructions and comments are included
specific. Graphic associated with each model are included in
another worksheet to which could be accessed by clicking on the tab
GRAPHICS call and located at the bottom of the spreadsheet.
FINC-Chapter 4
Problem related to the worksheet: the value of money over time
Using the computer model in C04.xlsx file spreadsheet to solve this problem.
a. Establish a repayment plan for a loan of $ 30,000 to be paid in equal installments at the end of each of the next 20 years at an interest rate of 10 percent. What is the annual payment?
b. Establish a plan for repayment of a loan of $ 60,000 to be paid in 20 equal annual installments at an interest rate of 10 percent. What is the annual payment?
c. Establish a plan for repayment of a loan of $ 60,000 to be paid in 20 equal annual installments at an interest rate of 20 percent. What is the annual payment?