Please Respond to the following FIN 100 EXCEL SPREADSHEET Week 4

I THIS EXCEL SPREADSHEET THE NUMBER IF YOU THANK YOU SIR. THE IS HOME WORK WEEK 4

E1

1.

a.The three types of loans have varying rate of interest. New car loans are the least at an average of 4. They are less than half of each of the other types of loans. Personal loans come second ranging from 9 to 10, and credit card plans are the highest, at 12 to 13.

b.Consumer credit has grown steadily overtime, increasing every year. The increments are pretty significant, starting low in 2013, and increasing substantially in 2014. The increase from 2014 to 2015 is not huge, but is significant nonetheless.

2.The current interest rates charged on automobile loans are 4.25 for 48-month loans, and 4.25 for 60-month loans. The automobile loans have been dropping slightly over time, having been 4.43 and 4.46 in 2013.

3.I would analyze the legitimacy of the borrower’s situation, and determine if he deserves the loan. I would then settle for the deal where both the borrower and business are fairly considered. I feel that the interest rate is fair, but the processing fee is a tad bit too much.

P2

FV = PV * (1 + rn); FV = 10000 * (1 + 0.08 * 5); FV = 14000; FV = $14,000

FV = PV * (1 + r)n; FV = 10000 * (1 + 0.08)5; FV = 14693.28; FV = $14,693.28

P3

FV = 5000 * (1 + 0.05*10) = $7,500

FV = 5000 * (1 + 0.07*7) = $7,450

FV = 5000 * (1 + 0.09*4) = $6,800

P4

FV = 2500 * (1 + 0.09)3 = $3,237.57

FV = 2500 * (1 + 0.03)3 = $2,731.81

FV = 3237.57 * (1 + 0.09)3 = $4,192.65

P5

7000 = PV * (1 + 0.03); PV = 7000/1.03 = $6,796.11

7000 = PV * (1 + 0.03*2); PV = 7000/1.06 = $6,603.77

P7

15000 = PV * (1 + 0.09*8); PV = 15000/1.72 = $8,720.93

15000 = PV * (1 + 0.09*6); PV = 15000/1.54 = $9,740.26 (it would increase)

P16

FV = 15555 * (1 + 0.145*7); FV = $31,343.33

FV = 19378 * (1 + 0.18*8); FV = $47,282.32

P17

359000 = PV * (1 + 0.11*23); PV = 359000/3.53 = $101,699.71

359000 = PV * (1 + 0.11*20); PV = 359000/3.53 = $112,187.50 (it would increase)

P19

FV = 19378 * (1 + 0.18)16 ; FV = $273,792.20

FV = 19378 * (1 + 0.18)32 ; FV = $3,868,416.13 (it would increase)