Homework #9 - Excel #2

CIT 11 Excel Homework #2 Loan Calculator 1. Create a “Loan Payment Calculator” worksheet similar to the one displayed below. a. Use the PMT function to calculate loan payments. The worksheet must include at least 10 years of loan calculations and at least 5 different loan amounts. (Be sure to use absolute addressing whenever possible. Hint – if you use absolute addressing in all the appropriate areas within the PMT function, you should be able to enter the formula ONLY once (in cell B8) – and then copy it to all other cell locations.) Tip: The PMT function generates a negative number because it’s money out of your pocket. To avoid the confusion that this sometimes causes, you can have the formula display the number as a positive number by using a negative sign before PMT i.e., =-PMT(…,…,…) b. The below sample uses an interest rate of 6.5%, you can use whatever rate you want, but the rate must be stored in a spreadsheet cell and the cell must be referenced in the PMT function (do not use the actual rate in the formula – refer to the cell that contains the rate). If you’re not clear what I mean, please ask!!! c. Format the text, cells and numbers on the spreadsheet as displayed in my sample. Take note of numeric values that use dollar signs and those that don’t. Be sure to display the rate with 2 decimal positions. d. Apply conditional formatting. Assume that you decide that $290 a month is a comfortable limit for your monthly payments. Use conditional formatting to display all loan payments that are greater than 290 in red and any that are less than or equal to 290 in green. (Note: If you did not use the tip listed in 1a, you’ll need to use negative values for the conditional format.) e. Save the workbook – name it “LoanCalcYourName.xls”. f. Email me a copy of the file.