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https://www.mint.com TAKE CONTROL OF YOUR FINANCES! x

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Presentation on theme: "https://www.mint.com TAKE CONTROL OF YOUR FINANCES! x"— Presentation transcript:

1 https://www.mint.com TAKE CONTROL OF YOUR FINANCES! x _inquirieshttp://www.creditkarma.com/article/hard_inquiries_and_soft _inquiries Consolidating-Student-Loans

2 PMT Formula

3 How to set-up an amortization table in Excel Month Beg BalancePaymentInterestPrincipal End Balance 0 10, 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.

4 Setting Up the Formulas Month Beg BalancePaymentInterestPrincipal End Balance 0 10, =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

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

6 Option 1 – Minimum Payment 2% Month Beg BalancePaymentInterest Principa l End Balance 0 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

7 Option 1 – Minimum Payment 3% Month Beg BalancePaymentInterestPrincipal End Balance 0 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

8 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?

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

10 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?

11 Option 3 – Time Payments Month Beg BalancePaymentInterestPrincipal End Balance 0 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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