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3. aandnbspandnbspandnbspprepare an excel spreadsheet that shows the endofthe quarter balance...

# Question: aandnbspandnbspandnbspprepare an excel spreadsheet that shows the endofthe quarter balance...

###### Question details

(a)   Prepare an EXCEL spreadsheet that shows the end-of-the quarter balance in Tiffany’s loan account over the next three years. In addition, use your amortisation schedule to calculate the total interest and the total amount paid over the life of the loan. Attach a copy your spreadsheet into your assignment submission.

According to the amortisation schedule, the total amount paid over the life of the loan will be $11,677.26 and the total interest will be$1,677.26

(b) A wealthy family friend nicknamed Lecce had offered to help Tiffany and has made an alternative offer for her to obtain the $10,000 loan. Lecce has proposed the following loan terms over a 12-month period. He claims this is a ‘cheaper and simple’ with everything paid off at the end of the renovation. Lecce will give her the$10,000 at the start of the month and Tiffany will start pay $900 at the each of each month for until the end of the loan period. He claims he is entitled to$800 in interest, which will be paid to him under his proposed conditions.

Tiffany would like to know the interest rate Lecce is charging her and they would also like to verify the total amount of interest ($800) he claims he is entitled to. To answer this question, follow all EXCEL instructions below – including the instructions given in the two diagrams. Also show your calculation for the total interest Tiffany paid under this arrangement. EXCEL Instructions: you will need to set up a new Amortisation schedule, like the one shown below, for the 12-month loan. For full marks provide: (i) a copy of your Excel spreadsheet that looks similar to the one below and (ii) your calculation for the total interest to verify Lecce’s$800 claim.Set up the amortisation schedule: Set up your amortisation schedule as shown below. Ensure you extend it to show all 12 months. Read the instructions in the boxes for more information.

Use Goal Seek to calculate the correct interest rate: Now use GoalSeek (DataàData Toolsà What-If Analysis in EXCEL 2010, Excel 2013 and EXCEL 2016) to find the Interest Rate (APR) that will balance the final entry in the spreadsheet to 0.

To run Goal Seek, place any value in the Interest Rate cell (B2). When run Goal Seek, Excel will try different interest rates until the value in E18 equals 0. It doesn’t matter what interest rate you start with, as Excel will tell you the correct answer J

Provide a screenshot when using Goal Seek, similar to the one provided below. Also provide an ‘after’ shot of the full spreadsheet, showing the correct answers. Remember to show the total interest calculation as well!

(c) Tiffany is seeking your advice in making this financial decision.Write a short summary(8-10sentences, double spaced, at least 2cm margins, 12pt Times New Roman font or equivalent) for the couple explaining your findings.