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.