Excel spreadsheet buildings
Not what you're looking for?
You can purchase a new building within the city limits for $525,000.
The city will offer a special incentive reducing the price by $25,000.
The city will finance the building over a period of 20 years at a 5.25% APR
Should you pay the loan off 5 years early the city will rebate you an additional 10% of the purchase price
I have figured out what to do, however, I am having a hard time putting this into an Excel Spreadsheet. Please review this method and place the following into a spreadsheet.
Involves borrowing $500,000 ($525,000 minus the 25K incentive) for 15 years at an annual interest rate of 5.25%
PMT formula would look something like this:
=INT/12,TERM*12-Amt Borrowed
You're dividing the Annual Interest Rate by 12 to determine the actual interest that you pay on each payment.
You're multiplying the Term by 12 to determine the Total Number of Payments made
The Amt Borrowed should have a minus sign in front of it in your Function
Once you've calculated your Monthly PMT just multiply it by the Total Number of PMTs made
=TERM*12*PMT to determine the Total Cost of the house
DO NOT forget to subtract $50,000 from it because you paid off the loan in 15 years.
answer should be $673,XXX..94
Purchase this Solution
Solution Summary
The expert examines Excel spreadsheet buildings.
Education
- Chartered Accountant (Equivalent to CPA in US), Institute of Charted Accountants of India
- Bachelor of Commerce, West Bengal University
Recent Feedback
- "I got this feedback and I wanted to know if you can explain it to me. I noticed something within your workings which I believe is incorrect. It looks like you've mistaken the Debt ratio for the Equity Multiplier. You've done a calculation to determine Return on Equity (ROE) but if you take a look at the ratios provided for us you'll see ROE listed on the bottom line already. You can use ROE, Profit Margin and Total Asset Turnover to figure out the Equity Multiplier amount. Equity multiplier is not provided for us and we need to calculate it. I really hope this is helpful to you. "
- "Very attentive to detail. Answers are designed in easy to understand format."
- "Fast response and thorough answer"
- "thank you very much! "
- "thank you so much !!!!!!!"
Purchase this Solution
Free BrainMass Quizzes
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Learning Lean
This quiz will help you understand the basic concepts of Lean.