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
(Figure 4–17).
Save button
12 * years *
monthly_payment –
loan_amount
=price +
total_interest
$265,000 home
will cost a total
of $407,740.46
Figure 4–17
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.
 
 
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