Shelly Cashman Excel 365 | Module 4: SAM Project A | Mendoza Group #shellycashman
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PROJECT STEPS
1. Latonya Hines is the business manager for the Mendoza Group, a commercial real estate developer in Minneapolis, Minnesota. Latonya is identifying buildings downtown that could be renovated as mixed-use properties for offices, retail stores, and housing. She has asked for your help in creating a loan analysis that summarizes information about the loans to cover the cost of the buildings.
Go to the Loan Analysis worksheet. The cells in the range C7:C8 have defined names, but cell C9 needs one so it can be used in formulas. Add Loan_Amount as the defined name for cell C9.
2. In cell C9, calculate the loan amount by entering a formula without using a function that subtracts the Down_Payment from the Price.
3. Latonya also wants to use defined names in other calculations to help her interpret the formulas.
In the range E5:E9, create defined names based on the values in the range D5:D9.
4. Latonya needs to calculate the monthly payment for a loan to purchase the Riverfront Drive property. Calculate the payment as follows:
a. In cell E7, start to enter a formula using the PMT function.
b. For the rate argument, divide the Rate by 12 to use the monthly interest rate.
c. For the nper argument, use the Term_in_Months to specify the number of periods.
d. For the pv argument, use the Loan_Amount to include the present value.
e. Insert a negative sign (-) after the equal sign in the formula to display the result as a positive amount.
5. In cell E8, enter a formula without using a function that multiplies the Monthly_Payment by the Term_in_Months and then subtracts the Loan_Amount from the result to determine the total interest.
6. In cell E9, enter a formula without using a function that adds the Price to the Total_Interest to determine the total cost.
7. Latonya wants to compare monthly payments for interest rates that vary from 4.75% to 5.95% and for terms of 180, 240, and 360 months. She has already set up the structure for a data table in the range B13:E26.
Create a two-variable data table as follows to provide the comparison that Latonya requests:
a. In cell B13, enter a formula without using a function that references the Monthly_Payment amount because Latonya wants to compare the monthly payments.
b. Based on the range B13:E26, create a two-variable data table that uses the term in months (cell E6) as the row input cell and the rate (cell E5) as the column input cell.
8. In the list of interest rates (range B14:B26), create a Conditional Formatting Highlight Cells Rule to highlight the listed rate that matches the rate for the Riverfront Drive property (cell E5) in Green Fill with Dark Green Text.
9. Change the color of the left, right, and bottom borders of the range B11:E26 to Blue, Accent 1 (5th column, 1st row in the Theme Colors palette) to coordinate with the other outside borders in the worksheet.
10. After the Mendoza Group purchases the Riverfront Drive building, it needs to renovate the property. Latonya has three options for funding the renovation. In the first scenario, she could borrow additional funds for a basic renovation and pay for the full amount of the loan over five years. She wants to determine the monthly payment for the first scenario.
In cell H11, insert a formula using the PMT function using the monthly interest rate (cell H7), the loan period in months (cell H9), and the loan amount (cell H5) to calculate the monthly payment for the first renovation scenario.
11. In the second scenario, Latonya could borrow money for a more extensive renovation and pay back the loan in 10 years instead of five. She could also reduce her monthly payments to $15,500 with an annual interest rate of 5.15%. She wants to know the loan amount if she requests those conditions.
In cell I5, insert a formula using the PV function and the monthly interest rate (cell I7), the loan period in months (cell I9), and the monthly payment (cell I11) to calculate the loan amount for the 10-year scenario.
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