Office 2013 myitlab:grader Instructions

Excel Project

EXP ECH02 H3 - Mortgage Calculator 1.3

Project Description:
As a financial consultant, you work with people who are planning to buy a new house. You want to
create a worksheet containing variable data (the price of the house, down payment, date of the
first payment, and borrowers credit rating) and constants (property tax rate, years, and number of
payments in one year). Borrowers pay 0.5% private mortgage insurance (PMI) of the loan amount if
they do not make at least a 20% down payment. A borrowers credit rating determines the required
down payment percentage and APR. For example, a person with an excellent credit rating may
make only a 5% down payment with a 3.25% APR loan. A per-son with a fair credit rating will make
a 15% down payment and have a higher APR at 5.25%. Your worksheet needs to perform various
calculations. The filled cells in column F indicate cells containing formulas, not values.
Instructions:
For the purpose of grading the project you are required to perform the following tasks:
Step

Points
Possible

Instructions

Start Excel. Download and open the file named e02_grader_h3.xlsx.

0.000

On the Payment worksheet, assign the range name Table to the range A17:C20.

0.000

In cell F4, enter a lookup function to calculate the APR Based on Credit Rating. Include the
range_lookup argument to ensure an exact match. Use range names for the first two arguments in the
function.

10.000

In cell F5, enter a lookup function and formula to calculate the Minimum Down Payment Required
amount. Include the range_lookup argument to ensure an exact match. Use range names for the first two
arguments in the function and for calculation after the closing parenthesis. For example, a borrower who
has an Excellent rating is required to pay a minimum of 5% down payment of the negotiated purchase
price. Multiply the function results by the negotiated cost of the house

In cell F6, enter a formula to calculate the Annual Property Tax based on the negotiated cost of the
house and the annual property tax rate. Use range names in the formula.

6.000

In cell F10, enter a formula to calculate the Total Down Payment, which is sum of the required
minimum down payment (calculated previously) and any additional down payment entered in the Inputs
section. Use range names in the formula.

4.000

In cell F11, enter a formula to calculate the Amount of the Loan, which is the difference between the
negotiated cost of the house and the total down payment. Use range names in the formula.

5.000

In cell F7, enter an IF function to calculate the Annual PMI. If the borrowers total down payment
(required and additional) is 20% or more of the negotiated purchase price (multiply the cost by the PMI
avoidance percentage), PMI is zero. If the total down payment is less than 20%, the borrower has to pay
PMI calculated by multiplying the amount of the loan by the PMI rate. Use range names whenever
possible in the function.

Updated: 02/02/2015

10.000

10.000

Current_Instruction.docx

Office 2013 myitlab:grader Instructions

Excel Project

Step

Instructions

Points
Possible

In cell F12, enter the PMT function to calculate the Monthly Payment. Use range names in the function.

10.000

10

In cell F13, enter a formula to calculate the Monthly Property Tax based on the annual amount
(calculated previously). Use range names in the formula.

5.000

11

In cell F14, enter a formula to calculate the Monthly PMI based on the annual amount (calculated
previously). Use range names in the formula.

5.000

12

In cell F15, enter a function to calculate the Total Monthly Payment.

5.000

13

In cell F16, enter the EDATE function to calculate the Date of Last Payment. The functions second
argument must calculate the correct number of months based on the total length of the loan. For
example, if the first payment date is 5/1/2016, the final payment date is 4/1/2046 for a 30-year loan. The
last argument of the function must subtract 1 to ensure the last payment date is correct.

10.000

14

Display the Range Names sheet and paste a list of range names starting in cell A2.

10.000

15

Set the width of column A to 12 and the width of column B to 22.

4.000

16

Create a footer on each worksheet with the text Exploring Series on the left side, the sheet name code
in the center, and the file name code on the right side of both worksheets.

6.000

17

Ensure that the worksheets are placed in the following order in the workbook: Payment, Range Names.
Save the workbook. Close the workbook, and then exit Excel. Submit the workbook as directed.

0.000

Total Points

Updated: 02/02/2015

100.000

Current_Instruction.docx