Linda Jones by a new condo. Her new Condo costs $75,000. She puts 3% for her down payment and wants the loan for 5 years. She gets a fixed interest rate at 3.5%.

John Smith refinance his $110,000 mortgage for 4.5%. He narrow the term of loan to 15 year.

Fred Flintstone buy a new car for $15,000. He makes down payment for $2,000. The bank charge 3.5% interest from him for 4 years.

Bart Simpson borrows student loan for 40,000. The lender charge him the interest for 8%. He wants to pay off his loan in 10 years.

Loan Scenarios

My loan Calculator tool have :• Customer Name • Date ( loan date)• Item ( what kind of loan)• Price ( How much of the item you purchase)• Down Payment (How much you going to decrease the amount of loan)• Loan Amount ( It is the amount that you owe.)• Customer Number ( Number you provide to each customer)• Rate ( Interest rate that you get for the loan)• Term ( How long is going to be for your loan)• Monthly Payment (How much you going to pay every month)• Total Interest ( Interest that you going to pay the entire loan)• Total Cost ( Total of the loan amount+ total interest+ down payment)

Loan Payment Calculator

Customer Name Linda Jones Customer Number 239881

Date 15-Jul-12 Rate 3.50%

Items Condo Years 5

Price $75,000.00 Monthly Payment $1,323.45

Down Payment $2,250.00 Total Interest $6,656.97

Loan Amount $72,750.00 Total Cost $81,656.97

I use This loan calculator tool for my four scenarios because it saves me a lot of time to calculate each loan, easy to use and understanding. I only change the loan amount, term, and rates for each scenario and Excel will do the work for me. It easy for me to make decision for loan option that will suit my budget.

Benefit of loan Calculator tool

• Save time ( It is difficult to get accurate calculation without using loan calculator tool.)

• Save money (when you know the numbers, or at lease a few potential outcomes, you can easily judge the financing option that will suit your lifestyle. Make sure the monthly budget can handle the payments. )

• Know your option (If the bank offers an outrageous loan option, you will be able to spot it after using the loan calculator. Test several options, write them down and know exactly what option is best for you and your budget.)

• Get a great deal ( you will get good deal after all.)

After I finish this project, I have learn how to calculate the monthly payment(PMT), the interest, the total interest, the total cost, creating amortization loan, and create billing statement. I will be using this tool in the future because I am able to compare loan option with this tool. It is useful for me in the future if I want to buy a house or loan money from the bank. It also help me to manage to pay off loan faster by using the amortization loan. It also show you how much you will save on the interest if you pay extra every month.

Learning Outcome