QRB/501 » Assignment

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Answer 12 question 1st assignment and 2nd assignment is the Signature assignment

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Instructions: Week 5 Individual Assignment Total Number of Questions - 12 Total Points: 6 1. You have twelve problems - on each tab of this Excel file. 2. Please show your work in the cells. Use Excel formulas instead of writing the values/answers directly in the cell. The instructor will then know where you made a mistake and provide you valuable feedback and partial credit (if appropria back and partial credit (if appropriate). Find the interest paid on a loan of $1,200 for three years at a simple interest rate of 5% per year. How much money will you pay after three years? Principal Rate Time Simple Interest (SI) Maturity Value =PRODUCT(B4:B6) =Principal + SI Find the maturity value of a loan of $1,750 for 28 months at 9.8% simple interest per year. Principal Rate Time Simple Interest (SI) Maturity Value -- Please make sure that the time periods for Time and Rate match. =PRODUCT(B3:B5) =Principal + SI Find the simple interest rate of a loan of $5,000 that is made for three years and requires $1,762.50 in interest. Principal Time SI Rate 762.50 in interest. A loan of $16,840 is borrowed at 9% simple interest and is repaid with $4,167.90 interest. What is the duration of the loan? Principal Rate SI Time How much money is borrowed if the interest rate is 9.25% simple interest and the loan is made for 3.5 years and has $904.88 interest? SI Rate Time Principal Find the ordinary and exact interest for a loan of $1000 at a 5% annual interest rate. The loan was made on March 15 and is due May 15. Loan date Loan Due Date Exact time days =B5-B4 Principal Rate Time Loan date Loan Due Date Exact time days Principal Rate Time Ordinary Simple Interest (SI) Exact Simple Interest (SI) =PRODUCT(B8:B10) =PRODUCT(G8:G10) =G5-G4 =PRODUCT(G8:G10) Find the bank discount and proceeds using ordinary interest for a loan to Michelle Anders for $7,200 at 8.25% annual simple interest from August 8 to November 8. Loan date Loan Due Date Exact time days Face Value (F) Discount Rate (D) Time Period (T) Bank Discount (B) years --> 'Convert Exact time in days to years =PRODUCT(B8:B10) OR =B8*B9*B10 Proceeds (P) =B8-B11 =B5-B4 What is the effective interest rate of a simple discount note for $8,000, at an ordinary bank discount rate of 11%, for 120 days? Face Value (F) Discount Rate (D) Time Period (T) Bank Discount (B) years --> 'Convert Exact time in days to years =PRODUCT(B4:B6) OR =B4*B5*B6 Proceeds (P) =B4 - B7 Rate =B7/PRODUCT(B9, B6) SOLVED EXAMPLE What is the effective interest rate for the first year for a loan of $20,000 for three years if the interest is compounded quarterly at a rate of 12%? Quoted Rate 12,00% quarterly No. of compounding periods per year EAR 4 For Quarterly, type 4; for semiannually, type 2; for annually, type 1; for monthly, type 12; fo 12,55% =EFFECT(B5, B6) 1. Ross Land has a loan of $8,500 compounded quarterly for four years at 6%. What is the effective interest rate for the first y Quoted Rate No. of compounding periods per year EAR For Quarterly, type 4; for semiannually, type 2; for annually, type 1; for monthly, type 12; fo =EFFECT(B11, B12) 2. Find the effective interest rate for the first year for a loan for four years compounded semiannually at an annual rate of 2% Quoted Rate No. of compounding periods per year EAR For Quarterly, type 4; for semiannually, type 2; for annually, type 1; for monthly, type 12; fo =EFFECT(B19, B20) 3. What is the effective interest rate for the first year for a loan of $5,000 at 10% compounded daily for three years? Quoted Rate No. of compounding periods per year EAR For Quarterly, type 4; for semiannually, type 2; for annually, type 1; for monthly, type 12; fo =EFFECT(B23, B24) 4. Depending on the issuer, a typical credit card agreement quotes an interest rate of 18 percent APR. Monthly payments are What is the actual interest rate you pay on such a credit card? Quoted Rate No. of compounding periods per year EAR For Quarterly, type 4; for semiannually, type 2; for annually, type 1; for monthly, type 12; fo =EFFECT(B30, B31) 5. Find the effective interest rate for a loan of $3,500 at 10% interest compounded quarterly. Quoted Rate No. of compounding periods per year EAR For Quarterly, type 4; for semiannually, type 2; for annually, type 1; for monthly, type 12; fo =EFFECT(B36, B37) SOLVED EXAMPLE Tim Bowling has $20,000 invested for three years at a 5.25% annual rate compounded daily. How much interest will he earn? Initial Investment (PV) Quoted Rate Compounding Frequency Number of compoundings (m) Quoted Rate divided by m = RATE Number of Years NPER (Num. of years * m) Ending Amount (FV) Compound Interest $20.000 5,25% Daily 365 0,0144% 3 1095 $23.411,35 $3.411,35 Choose one For Quarterly, type 4; for semiannually, type 2; for a Exercise Find the future value of a $15,000 money market investment at 2.8% annual interest compounded daily for three years. Initial Investment (PV) Quoted Rate Compounding Frequency Number of compoundings (m) Quoted Rate divided by m = RATE Number of Years NPER (Num. of years * m) Ending Amount (FV) Compound Interest Choose one For Quarterly, type 4; for semiannually, type 2; for a for semiannually, type 2; for annually, type 1; for monthly, type 12; for daily, type 365 for semiannually, type 2; for annually, type 1; for monthly, type 12; for daily, type 365 SOLVED EXAMPLE The Holiday Boutique would like to put away some of the holiday profits to save for a planned expansion. A total of $8,000 is needed in three years. How much money in a 5.2% three-year certificate of deposit that is compounded monthly must be invested now to have the $8,000 in three years? Future Value Needed (FV) Quoted Rate Compounding Frequency Number of compoundings (m) Quoted Rate divided by m = RATE Number of Years NPER (Num. of years * m) Amount Invested Now (PV) $8.000 5,2% Monthly 12 0,4333% 3 36 $6.846,78 Choose one For Quarterly, type 4; for semiannually, type 2; for a Exercise How much should be invested now to have $15,000 in six years if interest is 4% compounded quarterly? Future Value Needed (FV) Quoted Rate Compounding Frequency Number of compoundings (m) Quoted Rate divided by m = RATE Number of Years NPER (Num. of years * m) Amount Invested Now (PV) Choose one For Quarterly, type 4; for semiannually, type 2; for a r semiannually, type 2; for annually, type 1; for monthly, type 12; for daily, type 365 r semiannually, type 2; for annually, type 1; for monthly, type 12; for daily, type 365 Jamie Juarez needs $12,000 in 10 years for her daughter’s college education. How much must be invested today at 2% annual interest compounded semiannually to have the needed funds? Future Value Needed (FV) Quoted Rate Compounding Frequency Number of compoundings (m) Quoted Rate divided by m = RATE Number of Years NPER (Num. of years * m) Amount Invested Now (PV) Choose one For Quarterly, type 4; for semiannually, type 2; for annually, ty A loan of $8,000 for two acres of woodland is compounded quarterly at an annual rate of 6% for five years. Find the compound amount and the compound interest. Initial Investment (PV) Quoted Rate Compounding Frequency Number of compoundings (m) Quoted Rate divided by m = RATE Number of Years NPER (Num. of years * m) Ending Amount (FV) Compound Interest Choose one For Quarterly, type 4; for semiannually, type 2; for annually, ty ually, type 2; for annually, type 1; for monthly, type 12; for daily, type 365 ually, type 2; for annually, type 1; for monthly, type 12; for daily, type 365 Week 6 About Your Signature Assignment This signature assignment is designed to align with specific program student learning outcome(s) in your program. Program Student Learning Outcomes are broad statements that describe what students should know and be able to do upon completion of their degree. The signature assignment may be graded with an automated rubric that allows the University to collect data that can be aggregated across a location or college/school and used for program improvements. Purpose of Assignment The purpose of this assignment is for students to synthesize the concepts learned throughout the course, provide students an opportunity to build critical thinking skills, develop businesses and organizations, and solve problems that require data. Assignment Steps Note: Although you will be studying the concept of CPI in more detail in your future ECO/561 class, for the purpose of this case, you need to use the concepts of percentages, percentage increase/decrease, and creating and interpreting line charts to compute the inflation rate in the US economy and determine which time period experienced the highest inflation rate. Follow the steps below to complete this signature assignment: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Search for the Federal Reserve Bank of St. Louis (FRED). On the home page of the website, you will see a search box. Type in CPI- AUCSL in the search box and press the return key. The first result of the search will be "Consumer Price Index for All Urban Consumers: All Items." Click on this result link. Click on the Download link and download the data in Excel®. On the Excel® file, the second column gives you the CPI values for each period starting from 1947. Go to the last row and notice the last date and the CPI value. Go back 6 years from this last date. For example, if the last date is 2016-11-01, then the date 6 years ago would be 201011-01. Copy and paste this six years data into a separate Excel® tab. Using Excel®, calculate the percentage change in CPI from a year earlier for each observation, beginning with the observation one year later than the first observation. To make this calculation, click on the blank cell next to the observation corresponding to that date and then use Formula 1, located in the Signature Assignment Excel® Formulas document (note that in Excel®, the symbol for multiplication is *), where t-1 is the first observation and t is the observation one year later. For example, to find the percentage change in CPI from 2010-11-01 to 2010-10-01, refer to Formula 2 located in the Signature Assignment Excel® Formulas document. Convert this value to a percentage in Excel®. Repeat this process for the remaining observations (you can use the copy and paste functions to avoid having to retype the formula). This new column contains the national inflation rate. Create a line graph of the percentage changes (inflation rates) from a year earlier. Which period experienced the highest inflation rate? What was the inflation rate during that period? Date 11/01/16 11/02/16 11/03/16 11/04/16 11/07/16 11/07/16 11/07/16 11/07/16 11/10/16 11/10/16 11/11/16 11/14/16 11/16/16 11/18/16 11/18/16 11/18/16 11/21/16 11/22/16 11/27/16 11/30/16 11/28/16 11/28/16 Problem Experienced Lockups Lockups Memory Errors Lockups Weekly Virus Scan Lockups Memory Errors Memory Errors Slow Startup Weekly Virus Scan Memory Errors Memory Errors Manual Re-start Memory Errors Weekly Virus Scan Lockups Memory Errors Memory Errors Memory Errors Weekly Virus Scan Memory Errors Lockups Downtime Minutes 25 35 10 40 60 30 35 20 45 60 30 10 20 35 60 25 35 20 40 60 15 25 Signature Assignment Formulas QRB/501 Version 10 University of Phoenix Material Signature Assignment Formulas Formula One Formula Two Copyright © 2017 by University of Phoenix. All rights reserved. 1
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Explanation & Answer

Kindly see attached the files corresponding to week five and CPI of week 6

Instructions:
Week 5 Individual Assignment
Total Number of Questions - 12
Total Points: 6

1. You have twelve problems - on each tab of this Excel file.
2. Please show your work in the cells. Use Excel formulas instead of writing the values/answers directly in the cell.
The instructor will then know where you made a mistake and provide you valuable feedback and partial credit (if appropria

back and partial credit (if appropriate).

Find the interest paid on a loan of $1,200 for three years at a simple interest rate of 5% per year.
How much money will you pay after three years?
Principal
Rate
Time

$1.200
5%
3

Simple Interest (SI)
Maturity Value

$180 =PRODUCT(B4:B6)
$1.380 =Principal + SI

Find the maturity value of a loan of $1,750 for 28 months at 9.8% simple interest per year.
Principal
Rate
Time

$1.750
10%
2,3 -- Please make sure that the time periods for Time and Rate match.

Simple Interest (SI)
Maturity Value

$400 =PRODUCT(B3:B5)
$2.150 =Principal + SI

Find the simple interest rate of a loan of $5,000 that is made for three years and requires $1,762.50 in interest.
Principal
Time
SI
Rate

$5.000
3,00
$1.762,50
11,75%

762.50 in interest.

A loan of $16,840 is borrowed at 9% simple interest and is
repaid with $4,167.90 interest. What is the duration of the loan?
Principal
Rate
SI
Time

$16.840
9,00%
$4.167,00
2,75

How much money is borrowed if the interest rate is 9.25% simple interest
and the loan is made for 3.5 years and has $904.88 interest?
SI
Rate
Time
Principal

$904,88
9,25%
3,50
$2.795,00

Find the ordinary and exact interest for a loan of $1000 at a 5% annual
interest rate. The loan was made on March 15 and is due May 15.
Loan date
Loan Due Date
Exact time
Principal
Rate
Time

3/15/2017
5/15/2017
61 days

=B5-B4

$1.000
5,00%
0,17

Ordinary Simple Interest (SI)

Loan date
Loan Due Date
Exact time
Principal
Rate
Time

$8,47
=PRODUCT(B8:B10)

3/15/2017
5/15/2017
61
$1.000
5,00%
0,17

Exact Simple Interest (SI)

days

=G5-G4

$8,36
=PRODUCT(G8:G10)

Find the bank discount and proceeds using ordinary interest for a loan to Michelle Anders for $7,200
at 8.25% annual simple interest from August 8 to November 8.
Loan date
Loan Due Date
Exact time
Face Value (F)
Discount Rate (D)
Time Period (T)
Bank Discount (B)
Proceeds (P)

8/8/2017
11/8/2017
92 days

=B5-B4

$7.200
8,25%
0,25 years --> 'Convert Exact time in days to years
$149,72 =PRODUCT(B8:B10) OR =B8*B9*B10
$7.050,28 =B8-B11

What is the effective interest rate of a simple discount note for $8,000,
at an ordinary bank discount rate of 11%, for 120 days?
Face Value (F)
Discount Rate (D)
Time Period (T)
Bank Discount (B)
Proceeds (P)
Rate

$8.000
11,00%
0,33 years --> 'Convert Exact time in days to years
$289,32 =PRODUCT(B4:B6) OR =B4*B5*B6
$7.710,68 =B4 - B7
11,4% =B7/PRODUCT(B9, B6)

SOLVED EXAMPLE
What is the effective interest rate for the first year for a loan of $20,000
for three years if the interest is compounded quarterly at a rate of 12%?
Quoted Rate

12,00% quarterly

No. of compounding
periods per year
EAR

4 For Quarterly, type 4; for semiannually, type 2; for annually, type 1; for monthly, type 12; fo
12,55% =EFFECT(B5, B6)

1. Ross Land has a loan of $8,500 compounded quarterly for four years at 6%. What is the effective interest rate for the first y
Quoted Rate

6,00% quarterly

No. of compounding
periods per year
EAR

4 For Quarterly, type 4; for semiannually, type 2; for annually, type 1; for monthly, type 12; fo
6,14% =EFFECT(B11, B12)

2. Find the effective interest rate for the first year for a loan for four years compounded semiannually at an annual rate of 2%
Quoted Rate

2,00% annual

No. of compounding
periods per year
EAR

1 For Quarterly, type 4; for semiannually, type 2; for annually, type 1; for monthly, type 12; fo
2,00% =EFFECT(B19, B20)

3. What is the effective interest rate for the first year for a loan of $5,000 at 10% compounded daily for three years?
Quoted Rate

10,00% daily

No. of compounding
periods per year
EAR

365 For Quarterly, type 4; for semiannually, type 2; for annually, type 1; for monthly, type 12; fo
10,52% =EFFECT(B23, B24)

4. Depending on the issuer, a typical credit card agreement quotes an interest rate of 18 percent APR. Monthly payments are
What is the actual interest rate you pay on such a credit card?
Quoted Rate

18,00% monthly

No. of compounding
periods per year
EAR

12 For Quarterly, type 4; for semiannually, type 2; for annually, type 1; for monthly, type 12; fo
19,56% =EFFECT(B30, B31)

5. Find the effective interest rate for a loan of $3,500 at 10% interest compounded quarterly.
Quoted Rate

10,00% quarterly

No. of compounding
periods per year
EAR

4 For Quarterly, type 4; for semiannually, type 2; for annually, type 1; for monthly, type 12; fo
10,38% =EFFECT(B36, B37)

SOLVED EXAMPLE
Tim Bowling has $20,000 invested for three years at a 5.25% annual rate compounded daily.
How much interest will he earn?
Initial Investment (PV)
Quoted Rate
Compounding Frequency
Number of compoundings (m)
Quoted Rate divided by m = RATE
Number of Years
NPER (Num. of years * m)
Ending Amount (FV)
Compound Interest

$20.000
5,25%
Daily
365
0,0144%
3
1095
$23.411,35
$3.411,35

C...


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