MATH 144 Grand Canyon University Loan Payment Calculation Worksheet

Description

In Chapter 1 of the text (1-13)(Attached) you will look at calculating a monthly payment for a loan. A simpler problem is to compute the amount a loan would cost you in one month.

Using information from an internet source, determine the current interest rate a credit card or loan. Suppose you borrow $1,000 (or spend $1,000) on a credit card. How much will you owe in one month? 6 months if you pay nothing for 6 months?

Compute the 6 month cost in two ways:

  1. Make 6 monthly computations. Enter these as formulas in a spreadsheet. (The goal here is really getting you to use spreadsheets and formulas for computations.)
  2. Use the formula, A= 1000*(1 + r)^(N) where N = the number of periods (6) and r = the periodic interest rate = APR/12, where APR is the annual percentage rate.

Here are a couple of options to research loans that do not require personal information. Top10PersonalLoans, Credit Karma.

A Microsoft Excel spreadsheet is required for this DQ.