InstructionsInstructions:Week 5 Individual AssignmentTotal Number of Questions - 12Total Points: 61. You have twelve problems - on each tab of this Excel file.2. Please show your work in the cells. Use Excel formulas instead of writing the values/answers directly in the cell. The instructor will then know where you made a mistake and provide you valuable feedback and partial credit (if appropriate).
Question 1 Find the interest paid on a loan of $1,200 for three years at a simple interest rate of 5% per year.How much money will you pay after three years?PrincipalRateTimeSimple Interest (SI) =PRODUCT(B4:B6)Maturity Value =Principal + SI
Question 2 Find the maturity value of a loan of $1,750 for 28 months at 9.8% simple interest per year.PrincipalRateTime-- Please make sure that the time periods for Time and Rate match.Simple Interest (SI) =PRODUCT(B3:B5)Maturity Value =Principal + SI
Question 3 Find the simple interest rate of a loan of $5,000 that is made for three years and requires $1,762.50 in interest. PrincipalTimeSIRate
Question 4 A loan of $16,840 is borrowed at 9% simple interest and is repaid with $4,167.90 interest. What is the duration of the loan?PrincipalRateSITime
Question 5 How much money is borrowed if the interest rate is 9.25% simple interest and the loan is made for 3.5 years and has $904.88 interest? SIRateTimePrincipal
Question 6 Find the ordinary and exact interest for a loan of $1000 at a 5% annual interest rate. The loan was made on March 15 and is due May 15.Loan dateLoan dateLoan Due DateLoan Due DateExact timedays =B5-B4Exact timedays =G5-G4PrincipalPrincipalRateRateTimeTime Ordinary Simple Interest (SI) Exact Simple Interest (SI)=PRODUCT(B8:B10)=PRODUCT(G8:G10)
Question 7 Find the bank discount and proceeds using ordinary interest for a loan to Michelle Anders for $7,200at 8.25% annual simple interest from August 8 to November 8.Loan dateLoan Due DateExact timedays =B5-B4Face Value (F)Discount Rate (D)Time Period (T)years --> 'Convert Exact time in days to yearsBank Discount (B) =PRODUCT(B8:B10) OR =B8*B9*B10Proceeds (P) =B8-B11
Question 8 What is the effective interest rate of a simple discount note for $8,000, at an ordinary bank discount rate of 11%, for 120 days? Face Value (F)Discount Rate (D)Time Period (T)years --> 'Convert Exact time in days to yearsBank Discount (B) =PRODUCT(B4:B6) OR =B4*B5*B6Proceeds (P) =B4 - B7Rate =B7/PRODUCT(B9, B6)
Question 9 SOLVED EXAMPLEWhat is the effective interest rate for the first year for a loan of $20,000 for three years if the interest is compounded quarterly at a rate of 12%? Quoted Rate12.00%quarterlyNo. of compounding periods per year4For Quarterly, type 4; for semiannually, type 2; for annually, type 1; for monthly, type 12; for daily, type 365EAR12.55% =EFFECT(B5, B6)1. Ross Land has a loan of $8,500 compounded quarterly for four years at 6%. What is the effective interest rate for the first year for the loan? Quoted RateNo. of compounding periods per yearFor Quart.
Basic Civil Engineering first year Notes- Chapter 4 Building.pptx
InstructionsInstructionsWeek 5 Individual AssignmentTotal Number .docx
1. InstructionsInstructions:Week 5 Individual AssignmentTotal
Number of Questions - 12Total Points: 61. You have twelve
problems - on each tab of this Excel file.2. Please show your
work in the cells. Use Excel formulas instead of writing the
values/answers directly in the cell. The instructor will then
know where you made a mistake and provide you valuable
feedback and partial credit (if appropriate).
Question 1 Find the interest paid on a loan of $1,200 for three
years at a simple interest rate of 5% per year.How much money
will you pay after three years?PrincipalRateTimeSimple Interest
(SI) =PRODUCT(B4:B6)Maturity Value =Principal + SI
Question 2 Find the maturity value of a loan of $1,750 for 28
months at 9.8% simple interest per year.PrincipalRateTime--
Please make sure that the time periods for Time and Rate
match.Simple Interest (SI) =PRODUCT(B3:B5)Maturity Value
=Principal + SI
Question 3 Find the simple interest rate of a loan of $5,000 that
is made for three years and requires $1,762.50 in interest.
PrincipalTimeSIRate
Question 4 A loan of $16,840 is borrowed at 9% simple interest
and is repaid with $4,167.90 interest. What is the duration of
the loan?PrincipalRateSITime
Question 5 How much money is borrowed if the interest rate is
9.25% simple interest and the loan is made for 3.5 years and has
$904.88 interest? SIRateTimePrincipal
Question 6 Find the ordinary and exact interest for a loan of
$1000 at a 5% annual interest rate. The loan was made on
March 15 and is due May 15.Loan dateLoan dateLoan Due
DateLoan Due DateExact timedays =B5-B4Exact timedays =G5-
G4PrincipalPrincipalRateRateTimeTime Ordinary Simple
Interest (SI) Exact Simple Interest
(SI)=PRODUCT(B8:B10)=PRODUCT(G8:G10)
Question 7 Find the bank discount and proceeds using ordinary
interest for a loan to Michelle Anders for $7,200at 8.25%
2. annual simple interest from August 8 to November 8.Loan
dateLoan Due DateExact timedays =B5-B4Face Value
(F)Discount Rate (D)Time Period (T)years --> 'Convert Exact
time in days to yearsBank Discount (B) =PRODUCT(B8:B10)
OR =B8*B9*B10Proceeds (P) =B8-B11
Question 8 What is the effective interest rate of a simple
discount note for $8,000, at an ordinary bank discount rate of
11%, for 120 days? Face Value (F)Discount Rate (D)Time
Period (T)years --> 'Convert Exact time in days to yearsBank
Discount (B) =PRODUCT(B4:B6) OR =B4*B5*B6Proceeds (P)
=B4 - B7Rate =B7/PRODUCT(B9, B6)
Question 9 SOLVED EXAMPLEWhat is the effective interest
rate for the first year for a loan of $20,000 for three years if the
interest is compounded quarterly at a rate of 12%? Quoted
Rate12.00%quarterlyNo. of compounding periods per year4For
Quarterly, type 4; for semiannually, type 2; for annually, type
1; for monthly, type 12; for daily, type 365EAR12.55%
=EFFECT(B5, B6)1. Ross Land has a loan of $8,500
compounded quarterly for four years at 6%. What is the
effective interest rate for the first year for the loan? Quoted
RateNo. of compounding periods per yearFor Quarterly, type 4;
for semiannually, type 2; for annually, type 1; for monthly, type
12; for daily, type 365EAR =EFFECT(B11, B12)2. Find the
effective interest rate for the first year for a loan for four years
compounded semiannually at an annual rate of 2%Quoted
RateNo. of compounding periods per yearFor Quarterly, type 4;
for semiannually, type 2; for annually, type 1; for monthly, type
12; for daily, type 365EAR =EFFECT(B19, B20)3. What is the
effective interest rate for the first year for a loan of $5,000 at
10% compounded daily for three years?Quoted RateNo. of
compounding periods per yearFor Quarterly, type 4; for
semiannually, type 2; for annually, type 1; for monthly, type 12;
for daily, type 365EAR=EFFECT(B23, B24)4. Depending on the
issuer, a typical credit card agreement quotes an interest rate of
18 percent APR. Monthly payments are required. What is the
actual interest rate you pay on such a credit card?Quoted
3. RateNo. of compounding periods per yearFor Quarterly, type 4;
for semiannually, type 2; for annually, type 1; for monthly, type
12; for daily, type 365EAR=EFFECT(B30, B31)5. Find the
effective interest rate for a loan of $3,500 at 10% interest
compounded quarterly. Quoted RateNo. of compounding periods
per yearFor Quarterly, type 4; for semiannually, type 2; for
annually, type 1; for monthly, type 12; for daily, type
365EAR=EFFECT(B36, B37)
Question 10 SOLVED EXAMPLETim Bowling has $20,000
invested for three years at a 5.25% annual rate compounded
daily. How much interest will he earn? Initial Investment
(PV)$20,000Quoted Rate5.25%Compounding
FrequencyDailyChoose oneNumber of compoundings (m)365For
Quarterly, type 4; for semiannually, type 2; for annually, type
1; for monthly, type 12; for daily, type 365Quoted Rate divided
by m = RATE0.0144%Number of Years 3NPER (Num. of years
* m)1095Ending Amount (FV)$23,411.35Compound
Interest$3,411.35ExerciseFind the future value of a $15,000
money market investment at 2.8% annual interest compounded
daily for three years. Initial Investment (PV)Quoted
RateCompounding FrequencyChoose oneNumber of
compoundings (m)For Quarterly, type 4; for semiannually, type
2; for annually, type 1; for monthly, type 12; for daily, type
365Quoted Rate divided by m = RATENumber of Years NPER
(Num. of years * m)Ending Amount (FV)Compound Interest
Question 11 SOLVED EXAMPLEThe Holiday Boutique would
like to put away some of the holiday profits to save for a
planned expansion. A total of $8,000 is needed in three years.
How much money in a 5.2% three-year certificate of deposit
that is compounded monthly must be invested now to have the
$8,000 in three years? Future Value Needed (FV)$8,000Quoted
Rate5.2%Compounding FrequencyMonthlyChoose oneNumber
of compoundings (m)12For Quarterly, type 4; for semiannually,
type 2; for annually, type 1; for monthly, type 12; for daily,
type 365Quoted Rate divided by m = RATE0.4333%Number of
Years 3NPER (Num. of years * m)36Amount Invested Now
4. (PV)$6,846.78ExerciseHow much should be invested now to
have $15,000 in six years if interest is 4% compounded
quarterly?Future Value Needed (FV)Quoted RateCompounding
FrequencyChoose oneNumber of compoundings (m)For
Quarterly, type 4; for semiannually, type 2; for annually, type
1; for monthly, type 12; for daily, type 365Quoted Rate divided
by m = RATENumber of Years NPER (Num. of years *
m)Amount Invested Now (PV)
Question 12 Jamie Juarez needs $12,000 in 10 years for her
daughter’s college education. How much must be invested today
at 2% annual interest compounded semiannually to have the
needed funds? Future Value Needed (FV)Quoted
RateCompounding FrequencyChoose oneNumber of
compoundings (m)For Quarterly, type 4; for semiannually, type
2; for annually, type 1; for monthly, type 12; for daily, type
365Quoted Rate divided by m = RATENumber of Years NPER
(Num. of years * m)Amount Invested Now (PV)A loan of
$8,000 for two acres of woodland is compounded quarterly at an
annual rate of 6% for five years. Find the compound amount and
the compound interest.Initial Investment (PV)Quoted
RateCompounding FrequencyChoose oneNumber of
compoundings (m)For Quarterly, type 4; for semiannually, type
2; for annually, type 1; for monthly, type 12; for daily, type
365Quoted Rate divided by m = RATENumber of Years NPER
(Num. of years * m)Ending Amount (FV)Compound Interest