he loan is 10 y onthly frequen

Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter27: Time Value Of Money (compound)
Section: Chapter Questions
Problem 1E
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1. Exercise One: Jessica decides to take a $25,000 to help her cover her tuition expenses.
The tenor of the loan is 10 years, and the interest rate is 6.75%. Repayments will be
made on a monthly frequency. Based on the aforementioned information, and the
material covered in class, (a) use the PMT function in Excel to find the fixed total
payment, (b) verify your answer from (a) by programming the present value annuity
formula as shown in class, (c) create an amortization schedule for this loan, (d) create a
bar chart showing the Fixed Total Payment, Interest Paid, and Principal Paid.
Transcribed Image Text:1. Exercise One: Jessica decides to take a $25,000 to help her cover her tuition expenses. The tenor of the loan is 10 years, and the interest rate is 6.75%. Repayments will be made on a monthly frequency. Based on the aforementioned information, and the material covered in class, (a) use the PMT function in Excel to find the fixed total payment, (b) verify your answer from (a) by programming the present value annuity formula as shown in class, (c) create an amortization schedule for this loan, (d) create a bar chart showing the Fixed Total Payment, Interest Paid, and Principal Paid.
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