Microsoft Office Tutorials and References
In Depth Information
Other Financial Functions
1 Select cell E5. Use Point mode and the keyboard to enter the formula =12 * years *
monthly_payment – loan_amount to determine the total interest.
2 Select cell E6. Use Point mode and the keyboard to enter the formula =price + total_
interest to determine the total cost.
3 Select cell B8 to deselect cell E6 (Figure 4–17).
4 Click the Save button on the Quick Access Toolbar to save the workbook using the ﬁ le
name Braden Mortgage Loan Payment Calculator.
What are the new values displayed by Excel?
Excel displays a total interest (the lending institution’s gross proﬁ t) of $142,740.46 in cell E5
and a total cost of $407,740.46 in cell E6, which is the total cost of the home to the borrower
12 * years *
will cost a total
To Enter New Loan Data
Assume you want to purchase a Prius for $25,500.00. You have $5,280.00 for a down
payment and you want the loan for a term of ﬁ ve years. Braden Mortgage currently is
charging 10.25% interest for a ﬁ ve–year auto loan. The following steps show how to enter
the new loan data.
1 Select cell C3. Type Prius and then press the DOWN ARROW key.
2 In cell C4, type 25500 and then press the DOWN ARROW key.
3 In cell C5, type 5280 and then select cell E2.
4 In cell E2, type 10.25% and then press the DOWN ARROW key.