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Financial Modeling

In: Business and Management

Submitted By Christinexy
Words 258
Pages 2
Com3FD3 - Assignment 1
Due 11:00 p.m. Thursday October 2, 2014

Quick Buck Financial is launching a new product. The product is a two-year, partial amortization, new car loan, intended to help restore the customer's credit rating. The amortization period is between six and ten years depending on customer preference and previous credit history. To make things easy for their intended customers, they will have twice monthly payments (on the 15th and last day of the month), to better align with their pay checks. Interest will be charged on the basis of an APR with monthly compounding (mentioned in the fine print). The amount of the loan will be between $15,000 and $40,000 based on the expected professional clientele. If they want to borrow more or less, they will have to use a different product. Required: Build an amortization table model that handles the above constraints and offers an interest rate between 9% and 11.5% APR* in increments of 25 basis points (¼ of 1%). Required outputs of; required semi-monthly payment, balance owing at the end of the term, and total interest paid must be shown to the client. The model should not accept any input that does not conform to the loan details. Assume that the users are experienced with Excel and that they will be showing the model to potential clients.

*Annual percentage rate with monthly compounding.
A basis point is one percent of one percent or 0.0001. Semi-monthly means twice a month, 24 payments per year.…...

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