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http://www.creditkarma.com/ https://www.mint.com TAKE CONTROL OF YOUR FINANCES! http://newsline.depaul.edu/Info/Pages/FAQsforStudents.asp x http://www.creditkarma.com/article/hard_inquiries_and_soft _inquirieshttp://www.creditkarma.com/article/hard_inquiries_and_soft _inquiries http://www.oprah.com/money/Suze-Ormans-Advice-for- Consolidating-Student-Loans http://www.finaid.org/loans/consolidationfaq.phtml

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PMT Formula

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How to set-up an amortization table in Excel Month Beg BalancePaymentInterestPrincipal End Balance 0 10,000.00 1. What is the duration of the loan in months? Type in 0 and then 1. Select both numbers then drag down to put in total months.

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Setting Up the Formulas Month Beg BalancePaymentInterestPrincipal End Balance 0 10,000.00 1 =F2 =PMT(RATE/ 12),Months, Loan =B3*0.06/ 12 =C3-D3 =B3-E3 Calculating monthly payment. Put an equal sign in the cell. Click on Formulas. Click on Financial. Click on PMT. We need to put in three numbers followed by a comma

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The Bill… You have a $1500 balance on a MasterCard that charges a 19% interest rate Minimum payment is 2% or $25

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Option 1 – Minimum Payment 2% Month Beg BalancePaymentInterest Principa l End Balance 0 1,500.00 1 F2 =MAX(B3*0.0 2,25) =B3*.19/12 =C3-D3 =B3-E3 ASSUMPTIONS: 19% Interest Rate, $1,500 Balance and 2% Payment

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Option 1 – Minimum Payment 3% Month Beg BalancePaymentInterestPrincipal End Balance 0 1,500.00 1 F2 =MAX(B3*0.0 3,25) =B3*.19/12 =C3-D3 =B3-E ASSUMPTIONS: 19% Interest Rate, $1,500 Balance and 3% Payment

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Flat Monthly Payment Decide how much you can afford to pay monthly ▫Has to be more than the minimum ▫Example: $50 or $100 per month Replace the Payment with your choice How long will it take to pay off the balance? How much interest do you pay?

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Option 2 – Flat Amount Payments Month Beg BalancePaymentInterestPrincipal End Balance 0 1,500.00 1 F2 =50 =B3*.19/12 =C3-D3 =B3-E3 ASSUMPTIONS: 19% Interest Rate, $1,500 Balance and $50/month Payment

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Pay off the Balance in Set Time Use PMT function to determine your monthly payment ▫Let’s say 2 years What will your monthly payment be? How much interest do you pay?

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Option 3 – Time Payments Month Beg BalancePaymentInterestPrincipal End Balance 0 1,500.00 1 F2 =PMT(0.19/12, 24,-1500) =B3*.19/12 =C3-D3 =B3-E ASSUMPTIONS: 19% Interest Rate, $1,500 Balance and 24 month duration

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Interest on Loans Section 6.8. Objectives Calculate simple interest Calculate compound interest Solve applications related to credit card payments.

Interest on Loans Section 6.8. Objectives Calculate simple interest Calculate compound interest Solve applications related to credit card payments.

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