Develop a loan amortization project using Excel spreadsheets. This can be a car loan or a home mortgage. You will develop two alternative loan schedules using realistic rates and repayment schedules and write up a comparison of your two amortization schedules. This involves two tables and two line graphs displaying the decrease in principal.
1. Open the spreadsheet, plan which two loans you want to compare.
2. Fill in the cells for loan amount, rate, and years for the loan.
3. Create two line graphs for the ending balance. Please label the bottom or x axis and the left of the graph or y axis. Write a title across the top.
4. Use the CTRL button to select years and ending balance COLUMNS
5. Insert a line graph, choose the first picture of a line graph. REPEAT for the second loan.
6. Delete the blue points from the graph, label the left side "Ending Balance".
7. In Microsoft Word, write about the trends you see in the amortization table in two paragraphs. My Suggestions: Write another two paragraphs about the second amortization table. Then write your last two paragraphs comparing the two tables.
Your first step would be to identify the loans you want to compare and create your amortization schedules. To access the amortization template in excel click on file/new, then if you are using office 2003 click on templates/business templates/amortization schedule. If you are using office 2010 after you click on new click on Schedules under the Microsoft online section, then Loan Amortization schedule. Fill in the information pertaining to the loans of your choice. Once all the pertinent loan information is entered your amortization schedule will appear.
To create your graph you first ...
This solution shows how to create an amortization schedule excel. It also shows how to create a line graph using excel and offers suggestions of types of loan amortizations that can be done.