Assignment 12
A106 Introduction to Computing
Sections E127, E129, E133, and E135, Spring 1999
Due Date: April 27 or April 28, 1999
Amortization
The process of paying off a loan is called amortization. A table that shows the sequence of balances as the loan is being paid off is called an amortization table.
1. Perform the case study on p. 202 of the lab manual and print the chart as required by Step 8. Hint: See pp. 167-169 of the lab manual ("Other Types of Functions", Activity 9.2, "On Your Own".)
2. Design a spreadsheet that calculates the amortization table for a car loan. The amortization is affected by the following numbers:
(The monthly interest rate is one twelfth of the annual interest rate.)
The following is a sample amortization table (for another loan, not the one you are to compute a table for):
|
Principal |
$11,806.50 |
|||
|
Annual interest |
10.25% |
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|
Term (years) |
5 |
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|
Periods per year |
12 |
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|
Monthly payment |
$252.31 |
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|
No. of payments
|
60 |
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|
Payment No. |
Beginning balance |
Interest |
Principal |
Ending balance |
|
1 |
$11,806.50 |
$100.85 |
$151.46 |
$11,655.04 |
|
2 |
$11,655.04 |
$99.55 |
$152.76 |
$11,502.28 |
|
3 |
$11,502.28 |
$98.25 |
$154.06 |
$11,348.22 |
|
... |
... |
... |
... |
... |
|
... |
... |
... |
... |
... |
Once your spreadsheet is designed, print it. Then select the Interest and Principal columns and create a line chart showing the relationship between the two. Print the line chart. In the MS Works Word Processor, create and print a cover page for this assignment. Turn in the cover page and all printouts generated (preferably, stapled together with the cover page on top).