Microsoft Office Tutorials and References

In Depth Information

**Cases and Places**

Cases and Places
continued

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4 Saving for a Dream Home

Make It Personal

Find a home in your area that you would like to someday purchase. Based on the estimated current

price of the home, determine how much money you need to save each month so that in seven years,

you have enough to make a down payment of 10% of the current estimated value. Assume that you can

save the money in an account that is getting a 5.75% return. Create a worksheet that determines how

much you have to save each month so that in seven years the value of the account is 10% of the current

estimated value.
Hint:
Use the FV function with a monthly savings of $400. Then use the Goal Seek

command to determine the monthly savings amount. Protect the worksheet.

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5 Paying Off a Car Loan

Working Together

Jackie Waltrip is retiring from her teaching job, but before leaving her job, she wants to settle her

account with her union’s credit union. Jackie has seven years remaining on a ten–year car loan, with

an interest rate of 10.25% and a monthly payment of $450.00. The credit union is willing to accept

the present value (PV) of the loan as a payoff. Develop an amortization schedule that shows how much

Jackie must pay at the end of each of the ten years. As a team, use Excel Help to learn more about

present value. Then, design and create a worksheet that includes the beginning and ending balance, the

amount paid on the principal, and the interest paid for years four through ten. Because she has paid for

the three years already, determine only the ending balance (present value) for year three. Submit the

worksheet and a one–page paper on one of the following topics: (1) error checking; (2) elements you

can protect in a workbook; or (3) present value.